Fitch downgrades Tuscany

Fitch Ratings said it downgraded Tuscany International Drilling Inc.'s foreign- and local-currency issuer default ratings to B- from B+.

The outlook is negative.

The downgrade reflects Tuscany's limited liquidity position and its difficulties lowering leverage levels to be in line with expectations due to drilling rigs coming out of contract, as well as a contained number of unexpectedly contract cancellations, Fitch said.

These events have hindered the company's ability to generate cash flow from operations as a large number of drilling rigs remain idle, the agency said.

The ratings also consider the company's experienced management team and a technologically advanced asset fleet, which gives the company a competitive advantage, Fitch said.

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