S&P ups KCA Deutag, rates notes B-

S&P said it raised its long-term issuer credit rating on KCA Deutag Alpha Ltd. to B- from CCC+.

The outlook is stable.

At the same time, the agency raised to B- from CCC+ the issue rating on KCA's $375 million term loan B maturing in 2020 and senior secured notes.

In addition, S&P assigned a rating of B- to the proposed $425 million senior secured notes.

The agency said the upgrade follows KCA's results for 2017 and the guidance for 2018, coupled with the acquisition of Dalma Energy.

“We expect the acquisition will strengthen KCA's competitive position in the Middle East, one of the most attractive regions for oil and gas companies. This should translate into a material increase of the backlog,” S&P said in a news release.

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