S&P cuts GulfMark

Standard & Poor's said it lowered the corporate credit rating on GulfMark Offshore Inc. to B+ from BB-.

At the same time, GulfMark's senior unsecured rating was lowered to B from B+, the agency said.

Finally, the outlook was revised to stable from negative.

S&P noted that the rating actions reflect lower-than-expected deleveraging during the past year, combined with expectations for limited debt repayment over the next 12 months to 18 months, as GulfMark must fund elevated capital-expense levels related to new vessel construction during 2007.

The agency said that the ratings on GulfMark reflect its position in the volatile and cyclical offshore support vessel industry, elevated debt leverage, and an aggressive growth strategy that offsets near-term market strength.

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