Moody’s cuts credit ratings of six offshore drilling companies

On Monday, Moody’s Investors Service cut the credit ratings of six offshore drilling companies, according to Fuel Fix. Due to current industry conditions, rigs are being idled and offshore drilling companies are struggling to survive during this downturn.

Credit ratings were cut for the following companies:

  1. Atwood Oceanics fell to Caa1 from Ba3
  2. Diamond Offshore Drilling fell to Ba2 from Baa2
  3. Ensco fell to B1 from Baa2
  4. Noble Corp. subsidiary Noble Holdings International Ltd. fell to B1 from Baa3
  5. Rowan Companies Inc. fell to B1 from Baa3
  6. Transocean Inc. fell to B2 from Ba2

With offshore drilling contractors facing few new contracts for 2016, they have been among the hardest hit as a result of the oil price collapse. Moody’s analysts expect that offshore drilling contractors will face an extremely challenging operating environment through at least 2018.

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