We have revised our operating assumptions for U.S.-based offshore service provider Oceaneering International Inc. for the next three years and expect credit measures to weaken beyond our previous forecast. The reduction reflects our expectations of weaker EBITDA margins along with a substantially lower cash balance in 2018 as the offshore oil and gas sector, especially exploration and production, experiences weakness at least until 2019. Consequently, we are lowering our corporate credit rating on Oceaneering to 'BBB-' from 'BBB'. We are also lowering our issue-level rating to 'BBB-' from 'BBB'. The negative outlook reflects our view that leverage measures could weaken to a level inconsistent with the current rating if revenue and margins declined or spending increased beyond our current forecast.
