Moody's upgrades GulfMark

Moody's Investors Service said it upgraded GulfMark Offshore, Inc.'s corporate family rating from B1 to Ba3 and its $160 million senior unsecured notes due 2014 from B2 to B1. The outlook is stable.

The agency said the upgrade reflects the growth of GulfMark's fleet, improved quality and diversity and the enhanced forward revenues and earnings visibility. While adding 13 newbuilds since 2000, GulfMark has divested of older vessels to improve its overall asset mix. Moody's believes that GulfMark's younger, high-specification fleet is well-suited for the company's core markets and increases its flexibility to mobilize its vessels to other attractive international regions.

The ratings have limited upside in the near to medium term due to the company's relatively small scale and market position outside of its key North Sea market, Moody's said. The ratings also reflect GulfMark's recently initiated speculative newbuild program, which is expected to add 10 more vessels by 2008 at a total cost of $225 million.

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