S&P slices McDermott

S&P said it downgraded McDermott International Inc. to SD from CC and lowered the rating on its notes to D from C following the company’s entry into a forbearance agreement.

“The downgrade follows McDermott’s missed Nov. 1, 2019, interest payment on its senior unsecured notes due in 2024. The interest remains unpaid, and the 30-day grace period has elapsed. In our view, this constitutes a breach of the imputed promise of the notes. On Dec. 1, 2019, McDermott entered into a forbearance agreement with approximately 35% of the senior unsecured noteholders until Jan. 15, 2020,” said S&P in a press release.

The CCC rating on the superpriority term loan due in 2021 and the CC rating on the senior secured credit facility are unchanged.

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