S&P ups Oceaneering International

S&P said it raised its ratings on Oceaneering International Inc. and its senior unsecured notes to BB- from B+. The 3 recovery rating reflects an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the default.

“The upgrade to BB- reflects our expectation of improved credit measures in 2022. We expect higher oil and gas prices will drive increased investment by oil and gas producers in 2022 and beyond, boosting demand for products and services offered by companies such as Oceaneering,” the agency said in a press release.

About three quarters of Oceaneering’s revenues come from offshore oil and gas-related activity with about 65% of that tied to exploration and drilling activity, which S&P said it sees benefiting from increased activity in the near to medium term.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.