Moody's downgrades Shelf Drilling

Moody's Investors Service said it downgraded Shelf Drilling, Ltd.'s corporate family rating to Caa2 from Caa1 and its probability of default rating to Caa2-PD from Ca1-PD. The agency lowered the $900 million of senior unsecured bonds sold by Shelf Drilling Holdings, Ltd. to Caa3 from Caa2.

Moody’s said the rating action reflects its view that Shelf Drilling's ability to build additional cash buffers ahead of its $900 million bond maturity in February 2025 has been further pushed out given the weak and uncertain market outlook over the next 12-18 months.

Contract cancellations and suspensions announced in 2020 and lower average day rates will lead to weak financial performance this year and, under Moody's forecast, could result in negative free cash flow.

The outlook is negative.

© 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.