Research Update: Ausdrill Ltd. Ratings Raised To 'BB-' On New Contracts And Equity Raising; Outlook Stable

We expect Ausdrill's new contracts, equity raising, and business improvement initiatives to improve the company's credit metrics over the next 12 to 24 months. As a result, we are raising the issuer credit rating by one notch to 'BB-' from 'B+', and the issue rating on the group's syndicated bank facility by one notch to 'BB+' from 'BB'. At the same time, we are raising the issue rating on the senior unsecured notes by one notch to 'BB-' from 'B+' with the recovery rating remaining at '4'. The outlook is stable, reflecting our view that Ausdrill will maintain the growth of its contract book and successfully execute its newly secured African projects. On Oct. 11, 2017, S&P Global Ratings raised

...+ We expect Ausdrill's new contracts, equity raising, and business improvement initiatives to improve the company's credit metrics over the next 12 to 24 months. + As a result, we are raising the issuer credit rating by one notch to '##-' from 'B+', and the issue rating on the group's syndicated bank facility by one notch to '##+' from '##'. + At the same time, we are raising the issue rating on the senior unsecured notes by one notch to '##-' from 'B+' with the recovery rating remaining at '4'. + The outlook is stable, reflecting our view that Ausdrill will maintain the growth of its contract book and successfully execute its newly secured African projects....

Research Update