S&P cuts GulfMark, notes

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

The outlook is negative.

At the same time, the agency lowered the issue-level ratings on the company's unsecured notes to CCC+ (one notch above the corporate credit rating) from B. The recovery rating remains 2, indicating an expectation of substantial (high end of the 70% to 90% range) recovery in the event of payment default.

S&P said the downgrade reflects its belief that GulfMark could consider a debt exchange or restructuring that the agency would view as distressed over the next 12 months. Dayrates and utilization for the company's vessels will continue to weaken in 2016, resulting in unsustainable credit metrics.

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