Moody’s trims Shelf Drilling notes

Moody's Investors Service said it downgraded the senior unsecured notes issued by Shelf Drilling Holdings, Ltd. to B3 from B2.

The B2 corporate family rating and B2-PD probability of default rating of Shelf Drilling, Ltd. are unchanged.

The stable outlook is unchanged.

The downgrade of the senior unsecured notes reflects Moody's estimate that the company is likely to draw down on its senior secured revolving credit facility in the next 12 to 18 months, the agency explained.

This is contrary to Moody's original expectation that the company would not draw down on its revolver.

The agency said it anticipates that Shelf Drilling's liquidity reserves will reduce over time, as the company faces a longer than expected downturn in the oilfield services industry.

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