Due to ongoing challenges facing the offshore drilling industry and the uncertain timing of a recovery, U.S.-based offshore vessel provider Hornbeck Offshore Services Inc. announced that it has hired financial advisers to review its capital structure and assess strategic options. As a result, we are lowering our corporate credit rating to 'CCC-' from 'CCC+'. At the same time, we are lowering our issue-level rating on the company's unsecured debt to 'CCC' from 'B-' (recovery rating: '2'). The negative outlook reflects our view that Hornbeck could enter into what we would consider a distressed exchange. On Nov. 4, 2016, S&P Global Ratings lowered its corporate credit rating on Covington, La.-based offshore vessel provider Hornbeck Offshore Services Inc. to 'CCC-' from 'CCC+'.
