Moody’s drops GulfMark, notes

Moody's Investors Service said it downgraded GulfMark Offshore Inc.'s corporate family rating to Caa3 from B3, probability of default rating to Caa3-PD from B3-PD and senior unsecured notes to Ca from Caa1.

In addition, the speculative grade liquidity rating was lowered to SGL-4 from SGL-3.

The outlook is negative. This action concludes the reviews begun on Jan. 21.

"The downgrades of GulfMark's ratings are driven by the extreme softness in the offshore supply vessel (OSV) industry and the resulting weak credit metrics at Gulfmark. The sharp decline in OSV utilization and dayrates will significantly weaken GulfMark's 2016 EBITDA and exacerbate the balance sheet stress," Moody's senior analyst Sreedhar Kona said in a news release.

"The negative outlook reflects Gulfmark's heighted likelihood of pursuing a balance sheet restructuring option or purchase of its debt at steep discount."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.