S&P rates Eurasia Drilling BB

Standard & Poor's said it assigned a BB long-term and B short-term corporate credit ratings to Eurasia Drilling Co., along with a ruAA Russia national scale rating.

The outlook is positive.

The ratings are constrained by the cyclicality and competitiveness of the oilfield services industry and its dependence on the capital spending levels of oil and gas companies, S&P said.

Furthermore, the company has a relatively aged asset base, leading to substantial investment needs and faces country risks from operating in Russia, the agency said.

The ratings are supported by its longstanding relationship with its main customer LUKoil OAO, which is responsible for 61% of revenues, S&P said.

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