Moody's affirms GulfMark

Moody's Investors Service said it affirmed GulfMark Offshore, Inc.'s Ba3 corporate family and probability-of-default ratings and B1 (LGD5, 78%) $160 million senior notes due 2014.

The outlook is stable.

The affirmation follows the company's announcement of an agreement to purchase Rigdon Marine Corp. The agency noted that following the close of the transaction, the notes could be downgraded to B2 due to the amount of senior secured debt that GulfMark is expecting to assume.

Rigdon's relatively new fleet increases the quality and scale of GulfMark's asset base while providing an important entry into the Gulf of Mexico market, Moody's said, adding that the strategic benefits of the acquisition and GulfMark's strong financial position outweigh concerns regarding the increased debt levels and the inherent valuation and integration risks.

Pro forma for the acquisition, the debt-to-EBITDA ratio is about 2.5 times as of March 31, the agency said.

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