S&P ups Weatherford International

S&P said it raised Weatherford International plc’s issuer rating to B- from CCC+, its senior secured debt to B+ from B- and its senior unsecured debt to B- from CCC+. The 1 recovery rating (rounded estimate: 95%) on the secured debt and the 3 recovery rating (rounded estimate: 55%) on the unsecured debt are unchanged.

The agency noted Weatherford refinanced $500 million of 8¾% senior secured notes and $1.6 billion of its 11% senior unsecured notes to 2028 and 2030, respectively, substantially reducing its 2024 maturities that had totaled $2.6 billion before the transactions. With the repayment of $200 million of the 11% notes from cash on hand, only $300 million of the senior unsecured notes remain due in 2024.

“We expect both U.S. and international spending on oilfield services to improve by the low- to mid-double digits in 2022, buoyed by strong global crude oil and natural gas prices. In addition, the recent refinancings should result in annual interest expense savings of about $70 million,” S&P said in a press release.

The outlook is stable.

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