Moody’s downgrades Diamond Offshore

Moody's Investors Service said it downgraded Diamond Offshore Drilling, Inc.'s senior unsecured ratings to Baa2 from A3.

The outlook is negative. This concludes the review that was initiated on Aug. 24.

"The downgrade to Baa2 reflects our expectation of sharply higher financial leverage for Diamond Offshore through 2017 caused by the severe downturn in demand for offshore drilling services," Moody's senior vice president Pete Speer said in a news release.

"The company has good liquidity to fund its last new rig under construction, strong contract coverage of its core new rigs and no debt maturities until 2019, positioning Diamond to weather this challenging period for the industry."

© 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.