S&P rates Shelf Drilling notes B+, loan BB-

Standard & Poor’s said it placed its B+ long-term corporate credit rating on Shelf Drilling Holdings Ltd. on CreditWatch with negative implications.

At the same time, S&P placed its BB- issue rating on Shelf’s first-lien $200 million revolving credit facility, the B+ issue rating on Shelf’s $475 million senior secured notes and the B- rating on its $350 million term loan facility issued by Shelf Drilling Midco Ltd. on CreditWatch with negative implications.

The recovery rating on the first-lien $200 million revolver is unchanged at 2 with prospects in the higher half of the 70%-90% range. The recovery rating on $475 million senior secured notes is unchanged at 3, but prospects are now in the lower half of the 70%-90% range. The recovery rating on the $350 million term loan facility is unchanged at 6, the agency said.

S&P said the CreditWatch reflects its more pessimistic view on Shelf’s credit measures in the context of the persisting low oil prices that could materially affect Shelf’s ability to maintain the utilization and day rates it has reported over recent months.

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