Moody's drops KCA Deutag to Caa1

Moody's Investors Service said it downgraded the corporate family rating to Caa1 from B3 and the probability-of-default rating to Caa2 from Caa1 of Turbo Beta plc, the indirect parent company of KCA Deutag Drilling Group Ltd.

The agency said it downgraded the $1.625 billion senior facilities of Turbo Alpha Ltd., the holding company of KCA Deutag, to B3 (LGD2, 24%) from B2.

The ratings have been placed on review for further downgrade.

Moody's said the review reflects the possibility that ratings could see further downward pressure in the coming months if negotiations with senior and mezzanine lenders regarding a covenant restructuring are unsuccessful or if those result in a distressed exchange.

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