Moody's: Ausdrill view negative

Moody's Investors Service said it revised the outlook on Ausdrill Ltd.'s (Ba2 corporate family rating and the Ba3 senior unsecured rating on the $300 million Rule 144A notes issued by Ausdrill Finance Pty Ltd. to negative from stable.

At the same time, the agency affirmed both ratings.

The revision in outlook was prompted by Ausdrill's Nov. 7 announcement of a weaker-than-expected outlook for the fiscal year ended June 30, 2014 (FY14), including revenue and profit guidance materially below the fiscal year 13 results.

"The outlook change to negative reflects the challenging operating conditions in the mining services sector and the resultant uncertainty around the company's operating performance," Moody's vice president and senior credit officer Arnon Musiker said in a news release.

"Whilst Ausdrill's financial profile has been sufficiently resilient to manage the deteriorating operating environment to date, the ongoing challenges faced by the mining industry have reduced Ausdrill's headroom within the rating."

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