Moody's cuts Oceaneering to B1

Moody's Investors Service said it downgraded Oceaneering International, Inc.'s corporate family rating to B1 from Ba2, probability of default rating to B1-PD from Ba2-PD and senior unsecured ratings to B1 from Ba2. The SGL-1 speculative grade liquidity rating was unchanged. The agency revised the outlook to stable from negative.

"The steep drop in global crude prices in 2020 will further delay the recovery in offshore drilling markets keeping Oceaneering's financial leverage elevated over a more prolonged period than we previously expected," said Sajjad Alam, a Moody's senior analyst, in a press release.

"However, the company's large cash balance and ability to operate with a low level of capital spending will provide financial flexibility in navigating the protracted industry recovery," Alam said.

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