S&P downgrades Ocean Rig UDW to D

S&P said it lowered its long-term corporate credit rating on Ocean Rig UDW Inc. to D (default) from CCC-.

At the same time, S&P lowered its issue ratings on: Drillships Ocean Ventures Inc.'s $1.3 billion term loan B facility to D from CCC-, Drill Rigs Holdings Inc.'s $800 million senior secured notes to D from CCC-, Drillships Financing Holding Inc.'s $1.9 billion term loan B1 facility to D from CCC- and Ocean Rig's $500 million senior unsecured notes due in 2019 to D from CC.

The rating actions follow Ocean Rig's announcement on March 28 that it has entered into a restructuring support agreement with creditors holding more than 72% of its debt. Under the agreement, Ocean Rig would swap $3.69 billion in debt for equity, $288 million in cash, and $450 million in new secured debt.

The joint provisional liquidators filed a Chapter 15 petition on the company's behalf in a Manhattan bankruptcy court and the scheme companies presented winding-up petitions to the grand court of the Cayman Islands.

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