S&P ups Ausdrill, Barminco

S&P said it raised its long-term issuer credit rating on Ausdrill Ltd. to BB from BB-. The outlook is stable.

The agency also raised the issue-level ratings on Ausdrill's senior secured facility to BBB- from BB+, and on the senior unsecured notes to BB from BB-.

The 1 recovery rating on the senior secured facility and 4 recovery rating on the senior unsecured notes are unchanged, and indicate an expectation of very high (90% to 100%; rounded estimate: 95%) recovery prospects and average (30%) recovery prospects, respectively, in the event of a payment default.

At the same time, S&P raised the long-term issuer credit rating on Barminco Holdings Pty Ltd. to BB from B.

The agency also raised the issue-level ratings on Barminco's senior secured notes to BB from B, in line with the ratings on Ausdrill. The recovery rating on the notes remains at 4 (45%), indicating average recovery prospects.

S&P removed all ratings on Ausdrill and Barminco from CreditWatch with positive implications, where they were initially placed on Aug. 15.

“Ausdrill has completed its acquisition of Barminco, which was funded via a scrip offering and cash,” the agency said in a news release.

“In our view, the acquisition should improve Ausdrill's operating scale, service and commodity diversity.”

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