S&P lowers GulfMark Offshore

S&P Global Ratings said it lowered its corporate credit rating on GulfMark Offshore Inc. to CC from CCC. The outlook is negative.

At the same time, S&P lowered the issue-level rating on GulfMark Offshore's senior unsecured notes to CC from CCC+. The recovery rating remains 2, indicating an expectation for substantial recovery (70%-90%; lower half of the range) for debtholders in the event of a payment default.

“The downgrade follows GulfMark Offshore's announcement that it has offered to purchase up to $300 million of its 6.375% senior unsecured notes due 2022 at about 48% of par,” said S&P credit analyst Kevin Kwok in a news release.

“We view the offer as tantamount to default because debtholders will receive less value than promised on the original securities, and the offer is distressed rather than purely opportunistic.”

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