S&P ups Welltec, rates bonds B

S&P said it raised Welltec International ApS’ issuer rating to B from B- and assigned a B rating to its planned senior secured bonds, which were sold in September of 2021. The recovery rating on the notes is 3 (55%).

“We expect Welltec's record high EBITDA in 2022 to spill over into 2023, despite the weak economic forecast. We expect the company to report full-year 2022 EBITDA of about $160 million, while 2023 should be equally robust if oil prices remain at current levels. The company reported EBITDA of $134 million in the nine months ending Sept. 30, 2022, and we estimate it will finish the year with EBITDA of about $160 million. The results primarily reflect the very high oil prices that led to strong demand for the company's services (including growth in offshore jobs–about 40% of total jobs),” S&P said in a press release.

The outlook is stable.

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