S&P boosts McDermott

Standard & Poor's said it raised its corporate credit rating on McDermott International Inc. and its intermediate holding company, McDermott Inc., to B+ from B-.

S&P said it also raised its corporate credit rating on McDermott International's wholly owned operating subsidiary, J Ray McDermott S.A., to B+ from CCC+.

The upgrades reflect the companies' improved financial performance and liquidity positions, the agency said.

At the same time, S&P said it removed all the ratings from CreditWatch with positive implications where they were placed on Sept. 27.

Moreover, S&P said it assigned its 2 recovery rating to J Ray's $200 million senior secured notes due 2013 and its B+ corporate credit rating to McDermott International's wholly owned subsidiary, The Babcock & Wilcox Co., and its B+ rating and 3 recovery rating to B&W's $650 million senior secured bank loan facilities.

S&P added the ratings on McDermott International reflect an overall fair business risk profile with the highly cyclical and competitive marine construction business at J Ray being partially offset by more stable cash flow businesses at B&W and BWX Technologies.

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