Moody’s cuts Helmerich & Payne to Baa1

Moody's Investors Service said it downgraded Helmerich & Payne International Drilling Co.’s (H&P) senior unsecured rating to Baa1 from A3.

The outlook is negative. This resolves the review for downgrade that was initiated on Jan. 21.

"The downgrade reflects Helmerich & Payne's significantly decreasing cash flow resulting from the collapse in onshore U.S. drilling activity," Moody's senior vice president Terry Marshall said in a news release.

"H&P will be increasingly exposed to the lower margin spot market as its rig contracts roll off over the next couple of years."

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