S&P cuts McDermott International, ratings on watch

S&P said it cut the rating for McDermott International Inc. to CCC from B- on the view of an increasing risk the company might engage in a distressed exchange.

The agency also lowered the rating on McDermott’s term loan to CCC+ from B and the rating on the unsecured debt to CC from CCC.

“We are placing the issuer credit and issue-level ratings on CreditWatch with developing implications to reflect the potential for a higher or lower rating on McDermott depending on the outcome of its engagement with external advisors, which could result in asset sales and changes to its capital structure and balance sheet, including the possibility of a distressed exchange,” said S&P in a press release.

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