S&P: Secunda on positive watch

Standard & Poor's said it placed its B- long-term corporate credit and senior secured debt ratings on Secunda International Ltd. on CreditWatch with positive implications following the company's filing of a preliminary offering document with the SEC, in which it states its plan to sell up to $115 million in stock through an IPO.

The agency said ratings on Secunda reflect its poor internal cash flow generation, higher-than-expected capital expenditures, high debt leverage and absence of meaningful liquidity.

These factors, which hamper the ratings, are somewhat offset by the company's large, albeit

diminished, market share in the offshore support vessel industry in the Canadian east coast, its ability to employ its vessels in other international markets and its relatively young and specialized fleet of vessels, S&P added.

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