Moody's upgrades Oceaneering

Moody's Investors Service said it upgraded Oceaneering International, Inc.'s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD, and the company's senior unsecured notes ratings to Ba3 from B1. The agency also assigned a Ba3 rating to the company's planned $200 million in notes due in 2028. The company's speculative grade liquidity rating remains unchanged at SGL-1.

"The upgrade to Ba2 is driven by the substantial $200 million gross debt reduction, which puts Oceaneering in a better position to weather highly volatile industry cycles," said Thomas Le Guay, a Moody's vice president, in a statement. "We continue to expect further improvements in profitability, cash flow and leverage metrics through 2024 based on our positive view on the oilfield services sector."

The notes’ Ba3 rating, one notch below the Ba2 CFR, reflects the priority claim that the secured revolver has over Oceaneering's assets, the agency noted.

The rating outlook is stable.

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