Moody's rates Secunda liquidity SGL-3

Moody's Investors Service said it assigned an SGL-3 speculative grade liquidity rating to Secunda International indicating adequate liquidity. Secunda's senior implied and senior secured note ratings are B2, with a stable outlook.

Moody's said the SGL rating could face important bank covenant tests during the first half of calendar 2005, depending on the employment status of a key offshore subsea construction vessel.

The SGL-3 rating indicates adequate-to-weak expected internal cash flow and cash coverage of interest expense and capital spending, adequate combined cash balance and undrawn bank revolver back-up liquidity for cash flow shortfalls, adequate to weak covenant coverage and adequate alternative liquidity, according to Moody's.

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