Moody’s revises KCA Deutag to negative

Moody's Investors Service said it affirmed KCA Deutag Alpha Ltd.’s B3 corporate family rating, B3-PD probability of default rating and the B3 ratings on the revolving credit facility and term loan.

The agency also affirmed the B3 ratings on the senior secured notes at Globe Luxembourg SCA, and the senior secured notes at KCA Deutag UK Finance plc.

The outlook on all ratings was changed to negative from stable.

Moody’s said the action reflects its view that KCA Deutag's credit metrics could deteriorate further over the next 12 to 18 months due to continued pricing pressures and lower level of activity, which in turn may weaken the company's liquidity profile. The company's Moody's-adjusted leverage stood at 4.8 times as of Sept. 30 compared to 4.3 times at year-end 2014 but could increase toward 6 times by year-end 2016.

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