S&P lifts Ausdrill to positive

S&P said it revised the outlook on Ausdrill Ltd. to positive from stable.

The agency also said it affirmed the issuer credit rating on the company at B+.

S&P also said it affirmed the ratings on Ausdrill Finance Pty Ltd.'s $300 million senior unsecured notes at B+ with a recovery rating of 4.

The agency also said it affirmed the ratings on Ausdrill Finance and Ausdrill International Pty Ltd.'s A$125 million secured syndicated bank loan at BB with the recovery rating unchanged at 1.

The outlook revision reflects Ausdrill's proactive cost management, reduced leverage and recent new contract wins, which have improved the company's credit metrics, S&P said.

There is a one-in-three likelihood of an upgrade over the next 12- to 18-months if the company continues to prudently manage the contract book and ramps up its new contracts in Africa as it expects, the agency said.

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