Moody's assigns Valaris, notes B3

Moody's Investors Service said it assigned new ratings to Valaris Ltd., including a B3 corporate family rating, a B3-PD probability of default rating and a B3 rating on the company's $550 million of senior secured notes due 2028. Moody's also assigned a SGL-2 speculative grade liquidity rating, reflecting good liquidity. The outlook is stable.

These ratings were assigned following Valaris’ emergence from bankruptcy on Friday, Moody’s said.

"Valaris will benefit from significantly reduced debt and interest cost after eliminating $7.1 billion of debt through the Chapter 11 bankruptcy process," said Sajjad Alam, a Moody's senior analyst, in a press release

"While we expect offshore drilling demand to remain relatively weak through 2022, Valaris has a large cash balance and improved cost structure that will provide support as the company moves towards breakeven free cash flow over time," Alam said.

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