Moody's lowers Turbo Beta

Moody's Investors Service said it has downgraded to B2 from B1 the corporate family rating and probability of default rating of Turbo Beta Ltd. (consolidated with its subsidiaries, Abbot), the ultimate holding company for Abbot Group Ltd.

At the same time, Moody's said it downgraded to B1 from Ba3 the rating on the $1.625 billion senior facilities raised by Turbo Alpha Ltd., the immediate holding company of Abbot Group.

The agency added that the LGD assessment remains unchanged at LGD3 (34%) while the ratings have been placed on review for further possible downgrade.

The rating downgrades are prompted by Moody's view that, given the growing likelihood of a substantial and potentially prolonged downturn in demand for drilling and oilfield services, Abbot will be unable to reduce its leverage over the short- to medium-term at or below 4.5x in order to maintain the B1 corporate family and Ba3 senior secured ratings.

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