S&P cuts Petroleum Geo-Services to SD, notes to D

S&P said it lowered its long-term corporate credit rating on Petroleum Geo-Services ASA to SD (selective default) from CC.

At the same time, the agency downgraded its issue rating on PGS' $450 million senior unsecured notes due 2018 to D from C. The recovery rating is unchanged at 6, reflecting an expectation of negligible (0-10%) recovery in the event of a payment default and the significant amount of secured debt that ranks ahead of the notes.

S&P affirmed the CCC+ rating on the $400 million senior secured notes and removed it from CreditWatch, where it was placed with negative implications on Nov. 29. The recovery rating remains unchanged at 3, reflecting an expectation of meaningful recovery in the higher half of the 50%-70% range in the event of a payment default.

S&P said the downgrade follows Petroleum Geo-Services’ recent announcement that about 94% of the holders of its $450 million outstanding senior unsecured notes exchanged their debt for $212 million new notes due 2020 (50%) and $202 million in cash. In the agency’s view, the conversion is tantamount to a default.

© 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.