Oceaneering International Inc. Outlook Revised To Negative On Prolonged Industry Downturn; 'BBB' Credit Rating Affirmed

We have reduced our operating assumptions for U.S.-based offshore service provider Oceaneering International Inc. for the next three years to reflect our view that the slowdown in spending and activity related to the offshore oil and gas sector, especially exploration and drilling, will continue at least until 2019. We expect funds from operation (FFO) to debt to be slightly below our downside trigger of 45% in 2017 before rebounding in 2018 and 2019. Consequently, we are revising our rating outlook to negative and we are affirming the 'BBB' corporate credit rating. The 'BBB' issue-level rating on the company's unsecured debt is unchanged. The negative outlook reflects our view that revenues and margins could decline further from our forecasts with leverage

...+ We have reduced our operating assumptions for U.S.-based offshore service provider Oceaneering International Inc. for the next three years to reflect our view that the slowdown in spending and activity related to the offshore oil and gas sector, especially exploration and drilling, will continue at least until 2019. + We expect funds from operation (FFO) to debt to be slightly below our downside trigger of 45% in 2017 before rebounding in 2018 and 2019. + Consequently, we are revising our rating outlook to negative and we are affirming the '###' corporate credit rating. The '###' issue-level rating on the company's unsecured debt is unchanged. + The negative outlook reflects our view that revenues and margins could decline further from our forecasts with leverage measures weakening to a level inconsistent with the current rating. NEW YORK (S&P Global Ratings) March 13, 2017--S&P Global Ratings today affirmed its '###' corporate credit rating and revised its rating outlook on Oceaneering...

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