S&P lifts Shelf to positive

Standard & Poor’s said it revised the outlook on Shelf Drilling Holdings Ltd. to positive from stable.

The agency also said it affirmed the B+ long-term corporate credit rating on Shelf, along with the BB- rating on its first-lien $200 million revolving credit facility, B+ rating on its $475 million notes and B- rating on its $350 million term loan facility.

The recovery ratings on Shelf’s debt are unchanged.

The agency said it still assesses Shelf’s business risk profile as weak, but believes that it has continued to strengthen in 2014 as a result of solid operational performance and a material increase in the order book.

Shelf said it will continue to benefit from the company’s sound market position and strategic focus as the No. 3 jack-up driller in the world, geographic diversification and management’s significant industry experience, S&P said.

Nonetheless, the business risk profile remains constrained by Shelf’s participation in the competitive, fragmented and capital-intensive oil and gas service industry, the agency said.

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