Moody’s cuts Bibby Offshore, notes

Moody's Investors Service said it downgraded Bibby Offshore Holdings Ltd.'s corporate family rating to Caa2 from B3 and the probability of default rating to Caa2-PD from B3-PD.

Concurrently, the agency downgraded the rating of Bibby Offshore Services plc’s £175 million senior secured notes due 2021 to Caa2 from B3.

The outlook on all ratings is negative.

Moody’s said the action reflects the heightened stress on the company's operating performance, cash flow and the deterioration of the liquidity profile.

The agency expects Bibby Offshore market environment to remain difficult next year, with lack of visibility around an eventual recovery of prices.

Moody's said it believes that the company will report a negative EBITDA this year in the range of £20 million to £25 million with limited improvement for 2017.

The company's backlog remains low at £30 million at the end of September 2016, giving little visibility on revenue trend past three months.

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