S&P lifts GulfMark

S&P said it raised the corporate credit rating on GulfMark Offshore Inc. to CCC- from CC.

The agency also said it raised the rating on GulfMark Offshore's senior unsecured notes to CCC from CC. The recovery rating remains at 2, indicating 70% to 90% expected default recovery.

The outlook is negative.

The upgrades follow news that GulfMark Offshore has terminated its tender offer to purchase up to $300 million of its 6 3/8% senior unsecured notes due 2022 at below par, S&P said.

The company announced that the termination was due to lack of investor interest and its inability to meet the minimum $250 million threshold required to close the transaction, the agency explained.

The company will return or credit back all of the notes it had previously tendered to their respective holders, S&P added.

The negative outlook reflects an expectation that GulfMark Offshore's day-rates and utilization levels will remain weak in 2017 and 2018, keeping leverage at unsustainable levels, the agency said.

S&P also said it believes the company could consider another distressed-debt exchange or restructuring in the next six months.

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