S&P cuts Ausdrill, notes & loan

Standard & Poor's said it lowered its corporate credit rating on Ausdrill Ltd. to BB- from BB.

The outlook is stable.

At the same time, the agency lowered the ratings on Ausdrill Finance Pty Ltd.'s $300 million senior unsecured and subordinated notes to BB- from BB, and the recovery rating to 4 from 3.

The issue ratings on Ausdrill Finance Pty Ltd. and Ausdrill International Pty Ltd.'s A$300 million secured syndicated bank loan were also downgraded to BB+ from BBB-. The recovery rating on this bank loan remains at 1.

All ratings were removed from CreditWatch with negative implications, where they were placed on Nov. 7.

"The downgrades reflect our view that decreased overall demand for mining production and related services in Australia and Africa have weakened Ausdrill's financial risk profile to 'significant' from 'intermediate,'" S&P credit analyst Craig Parker said in a news release.

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