Moody’s downgrades Ensign

Moody’s Investors Service said it downgraded Ensign Drilling Inc.’s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD/LD from B3-PD, senior unsecured rating to Caa2 from Caa1 and speculative grade liquidity rating to SGL-4 from SGL-3.

“Moody’s views Ensign’s cumulative repurchase of $152 million of notes in 2020 for a gain on repurchase of $92 million as a distressed exchange, which Moody’s views as a default. Accordingly, an /LD (limited default) designation has been appended to Ensign’s PDR, indicating that a limited default has occurred. This designation will be removed within a few business days,” the agency said in a press release.

The outlook remains 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.