S&P lifts Eurasia to stable

S&P said it revised the outlook on Eurasia Drilling Co. to stable from negative.

The agency also said it affirmed the BB long-term and B short-term corporate credit ratings and ruAA Russia national scale rating.

S&P also said it affirmed the BB rating on Eurasia's senior unsecured debt.

The outlook revision reflects a view that the Russian oil market has emerged from its trough in 2016, along with an expectation of a gradual increase in capital expenditures in the sector in the coming years, the agency said.

S&P said it believes that higher demand for drilling in 2017 and 2018 will translate into a recovery of the company's EBITDA to $450 million in 2017.

This profitability, coupled with lower capital expenditure compared with historical levels should enable the company to de-leverage further and maintain an adjusted debt-to-EBITDA ratio of less than 2x, the agency said.

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