S&P: KCAD view to negative

Standard & Poor’s said it revised the outlook on KCA Deutag Alpha Ltd. (KCAD) to negative from stable.

The agency also said it affirmed the company’s B long-term corporate credit rating, along with the B ratings on KCAD’s $375 million term loan B due in 2020, $375 million senior secured notes due in 2021, $500 million senior secured notes due in 2018 and revolving credit facilities totaling $250 million due in 2019.

The recovery ratings on these instruments are unchanged at 3, reflecting 50% to 70% expected default recovery.

The outlook revision considers a view that KCAD’s credit metrics will deteriorate modestly in the next couple of years, S&P said.

This is largely because of persistently low oil prices, resulting in much lower demand than expected, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.