Moody’s revises Seadrill to stable

Moody's Investors Service said it affirmed Seadrill Partners LLC's corporate family rating and probability of default rating at Caa2 and Caa2-PD, respectively.

The agency also affirmed the Caa2 rating on the $2.9 billion senior secured term loan B due 2021, borrowed by subsidiaries Seadrill Operating LP and Seadrill Partners Finco LLC and the B1 rating on the $100 million first-out senior secured revolving credit facility due 2019, borrowed by Seadrill Operating, Seadrill Partners Finco and Seadrill Capricorn Holdings LLC, also a subsidiary of Seadrill.

The outlook on all ratings was changed to stable from negative.

Moody’s said the outlook change reflects the successful amendment of the three credit facilities of Seadrill, resulting in insulation from its parent's, Seadrill Ltd. (unrated), debt restructuring plans having entered Chapter 11 in September.

The facilities are now separated such that Seadrill facilities are now secured only by the company's assets without recourse to its parent or its assets, thereby removing the cross-defaults and cross-acceleration risks from the debt restructuring of the parent, the agency explained.

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