S&P raises Weatherford

S&P said it upgraded Weatherford International plc’s issuer and senior unsecured ratings to B from B- and senior secured ratings to BB- from B+.

“We expect FFO/debt to average above 25% and debt/EBITDA below 2.5x during the next 24 months compared with roughly 11% and 4x in 2021, respectively. Much improved industry conditions due to increased drilling levels combined with equipment attrition have supported improving margins and cash flows across most segments of the oilfield services sector,” the agency said in a press release.

Additionally, S&P noted the recent increase in Weatherford’s revolver commitments to $400 million the redemption of $175 million of its 11% notes due 2024 will help with liquidity.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.