Although we continue to believe the demand recovery for offshore oil and gas service providers will be protracted, we expect Houston-based Oceaneering International Inc.'s leverage metrics will modestly improve in 2021, benefiting from cost-reduction initiatives and free operating cash flow (FOCF) generation. As a result, we are affirming our 'B+' issuer credit rating on Oceaneering. At the same time, we are affirming our 'B+' issue-level rating on its senior unsecured notes. The '3' recovery rating is unchanged. We are revising our outlook to stable from negative based on our expectation that Oceaneering will modestly improve leverage metrics over the next 12-24 months and generate positive FOCF. We expect funds from operations (FFO) to debt to average about 20%. The stable
