S&P: J. Ray McDermott unchanged

Standard & Poor's said its ratings and outlook on J. Ray McDermott SA (BB/stable) are not affected by the announcement that the company intends to purchase substantially all of the assets of company Secunda International Ltd. (B-/Watch positive) for around $260 million.

The recent upgrade of J. Ray had included the potential for such a transaction, the agency said, noting that with a robust backlog of over $4 billion, strong financial performance and expectations for continued market strength over the near term, J. Ray has some cushion for additional debt leverage related to the acquisition of Secunda, if needed. Secunda operates marine vessels that support offshore construction and installation activities in the Gulf of Mexico, North Sea and Canada.

The Secunda assets should compliment J. Ray's existing construction-related assets, particularly its growing subsea construction business, the agency added.

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