Ausdrill Ltd. Ratings Lowered To 'B+' On Weaker Credit Metrics, Outlook Stable; Senior Secured Debt Lowered To 'BB'

SYDNEY (Standard&Poor's) March 20, 2015--Standard&Poor's Ratings Services said today that it had lowered its corporate credit rating on Australian mining services provider Ausdrill Ltd. to 'B+', from 'BB-'. At the same time, we lowered the ratings on Ausdrill Finance Pty Ltd.'s US$300 million, senior unsecured, and subordinated notes to 'B+' from 'BB-'; the recovery rating is '4L' (30%-50%, lower half of the range). We also lowered our issue ratings on Ausdrill Finance Pty Ltd. and Ausdrill International Pty Ltd.'s A$125 million, secured, syndicated bank loan to 'BB' from 'BB+'. The recovery rating on this bank loan is also affirmed at '1' (very high recovery). "The downgrades reflect our view that a prolonged weakness in commodity prices

...SYDNEY (Standard & Poor's) March 20, 2015--Standard & Poor's Ratings Services said today that it had lowered its corporate credit rating on Australian mining services provider Ausdrill Ltd. to 'B+', from '##-'. At the same time, we lowered the ratings on Ausdrill Finance Pty Ltd.'s US$300 million, senior unsecured, and subordinated notes to 'B+' from '##-'; the recovery rating is '4L' (30%-50%, lower half of the range). We also lowered our issue ratings on Ausdrill Finance Pty Ltd. and Ausdrill International Pty Ltd.'s A$125 million, secured, syndicated bank loan to '##' from '##+'. The recovery rating on this bank loan is also affirmed at '1' (very high recovery). "The downgrades reflect our view that a prolonged weakness in commodity prices has reduced demand for Ausdrill's services and that the company is likely to continue to face challenging conditions in the mining services sector, with no immediate prospect of recovery," Standard & Poor's credit analyst Minh Hoang said. "It also...

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