S&P downgrades Stena

S&P said it lowered the long-term corporate credit rating on Stena AB to BB- from BB.

The agency said it lowered issue rating on the $350 million senior secured notes and the $650 million term loan B to BB from BB+, one notch higher than the corporate credit rating.

The recovery rating is 2, indicating 70% to 90% expected default recovery.

S&P also said it lowered the ratings on Stena's unsecured debt to BB-. The recovery rating is 4, indicating 30% to 50% expected default recovery.

The outlook is negative.

The downgrades reflect the sharply deteriorated outlook for the oil drilling industry and its potentially long-lasting impact on Stena's business and financial risk, S&P said.

The effect for Stena is less pronounced than for pure drillers because the company is well diversified in the ferry, shipping and real-estate industries, the agency said.

This should cushion somewhat the impact of the weak drilling activity, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.