S&P rates HGIM loan B

S&P said it assigned a B- issuer credit rating to HGIM Corp.

The outlook is stable.

The agency also said it assigned a B rating to the company's $350 million first-lien term loan.

The recovery rating on this debt is 2, indicating 70% to 90% expected default recovery.

The B- issuer credit rating on HGIM reflects the company's still-elevated debt leverage following its debt restructuring and emergence from Ch. 11, the agency explained, combined with a continued weak outlook for the deepwater offshore oilfield services industry.

The ratings also consider that HGIM's mid-sized fleet lacks the scale and geographic diversity needed to offset more volatile market conditions in the Gulf of Mexico, S&P said.

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