S&P lowers Borets to negative

Standard & Poor's said it revised the outlook on Borets International Ltd. to negative from stable.

The agency also said it affirmed the company's BB long-term corporate credit and ruAA Russia national scale ratings.

S&P also said it assigned a BB rating to the proposed $420 million unsecured notes to be issued by the company's wholly owned finance subsidiary, Borets Finance Ltd.

The recovery rating on the proposed notes is 3, indicating 50% to 70% expected default recovery.

The outlook revision follows news of the issuance, which will be used to finance the buyback of its minority shareholder, Weatherford's 35.6% stake, S&P said.

The outlook revision also considers that the increase in debt could weaken the company's credit metrics more than anticipated, the agency said.

But, the company's operating performance will remain solid in 2013, maintaining the trend in recent years, S&P said.

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