Moody’s trims KCA Deutag

Moody’s Investors Service said it downgraded the corporate family rating of KCA Deutag Alpha Ltd. to Caa2 from Caa1 and the probability of default rating to Ca-PD from Caa1-PD. Concurrently, Moody’s downgraded to Caa2 from Caa1 the rating on KCA’s senior secured credit facility and on all rated senior secured debt instruments issued by KCA Deutag UK Finance plc.

The downgrade follows KCA’s announcement in its year-end earnings release on March 26 it planned to use the applicable grace periods for the interest payments due on April 1 with respect to the 2022 Notes and 2023 notes issued by KCA Deutag UK, the agency said.

“If the company does not pay the coupon before the end of the 30-day grace period, Moody’s will consider this as a default. In this event, Moody’s expects to assign an "/LD" to the PDR at that time,” the agency said in a press release.

Moody’s revised the outlook to negative from stable.

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