The ratings on Mandeville, La.-based HORNBECK-LEEVAC Marine Services Inc. reflect the company's position in the deep-water offshore supply vessel (OSV) market and the diversification provided by its tug and tank barge business. Both businesses are supported by long-term contracts, some with terms through March 2006. However, high debt leverage and contract-renewal risks temper these strengths. HORNBECK-LEEVAC owns nine OSVs designed to operate in the deep-water Gulf of Mexico with an average age of less than two years. The company is constructing an additional four OSVs at this time. The vessels that are currently under construction should be capable of receiving premium-priced contracts, as three out of four are 265-foot ships with ample mud capacities, large deck-load capacity, and Dynamic Positioning
