S&P lowers Offshore Drilling view to negative

S&P said it revised the outlook on Offshore Drilling Holding SA to negative from developing and affirmed the CCC- issuer credit rating on the company.

The negative outlook reflects the possibility the agency could lower the ratings in the next few months if the company doesn't replenish its debt reserve account, S&P explained.

A downgrade could also occur if negotiations with bondholders don't lead to a refinancing, the agency said, or if a distressed restructuring transaction is inevitable.

The negative view also considers a view of the increased risk of an event of default in the next month, absent an unanticipated significantly favorable change in the issuer's circumstances, S&P added.

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