Moody's upgrades Saipem

Moody's Investors Service said it raised the corporate family rating of Saipem SpA to Ba3 from B1 and its probability of default rating to Ba3-PD from B1-PD. The agency also upgraded the backed senior unsecured medium-term note program rating of Saipem's guaranteed subsidiary Saipem Finance International BV to (P)Ba3 from (P)B1 and the subsidiary's backed senior unsecured rating to Ba3 from B1.

Moody’s said it also changed the outlook on both entities to stable from ratings under review and concluded on the review for downgrade started on Feb. 2.

"Moody's upgraded Saipem's ratings to Ba3 to reflect that the now concluded €2 billion capital increase provides sufficient liquidity to execute the company's updated business plan, which is further supported by the improved business sentiment in the oilfield service (OFS) industry," said Janko Lukac, a Moody's vice president and senior analyst, in a press release.

The stable outlook reflects the support demonstrated by Saipem’s shareholders who supported the equity increase and provided the company with the liquidity it needed to restructure, the agency 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.