Moody's: Atwood view to positive

Moody's Investors Service said it changed Atwood Oceanics, Inc.'s rating outlook to positive from stable.

At the same time, the agency affirmed Atwood's Ba2 corporate family rating, Ba2-PD probability of default rating, Ba3 senior unsecured note rating and SGL-3 speculative grade liquidity rating.

"The positive outlook reflects the imminent delivery of Atwood's first two drillships - Atwood Advantage in December, 2013 followed by Atwood Achiever in June 2014," Moody's analyst Sajjad Alam said in a news release.

"After mobilization, each drillship could add $120 to $130 million in annual EBITDA and will significantly boost Atwood's earnings power and diversify its cash flows across more high specification rigs. Atwood should be able to cover the required large final shipyard payments for these two rigs using cash on hand, operating cash flow and availability under its revolving credit facility."

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