S&P rates Tuscany International Drilling B

Standard & Poor's said it assigned a B corporate credit ratings to Tuscany International Drilling Inc. de CV.

The outlook is stable.

The ratings reflect the company's vulnerable business risk profile and aggressive financial risk profile, S&P said.

The ratings also consider the company's participation in an industry that is subject to cyclical demand and price volatility, especially for drilling services, the agency said.

The ratings also consider Tuscany's relatively small scale in a highly competitive industry with relatively low barriers of entry, S&P said.

Mitigating these factors are the company's technologically advanced and relatively young fleet of drilling rigs designed to operate in Latin American exploration and production markets with outdated infrastructure, experienced management team and low annual maintenance capital spending requirements given its relatively new fleet, the agency said.

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