The ratings on Mandeville, La.-based HORNBECK-LEEVAC Marine Services Inc. reflect its 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 eight OSVs designed to operate in the deep-water Gulf of Mexico (GOM) having an average age of less than two years. Hornbeck is constructing an additional five OSVs with one supported by a long-term contract at this time. Hornbeck's vessels that are currently under construction should be capable of receiving premium-priced contracts, as four of the five vessels are 265-foot ships with ample mud
