S&P lowers Hercules Offshore to D

S&P said it lowered its corporate credit rating on Hercules Offshore Inc. to D from CC and lowered the issue-level rating on the company’s senior secured term loan to D from CC.

The recovery rating on the senior secured term loan remains 3, reflecting an expectation of meaningful (higher end of the 50% to 70% range) recovery for lenders in the event of a payment default.

“The downgrade follows the company’s announcement that it has filed Chapter 11 bankruptcy to facilitate an orderly asset sale,” said S&P credit analyst Kevin Kwok in a news release.

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