CORPORATESISSUER IN-DEPTH 5 September 2016ContactsIrina Baron 1.212.553.4307Associate Director irina.baron@moodys.comDanielle Ferry 212-553-7781Sr Director-Research danielle.ferry@moodys.comGlenn Levine 212-553-9595Assc Dir-Sr Research Analyst glenn.levine@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on Twitter Moodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research,Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services orproducts.For further detail, please see the last page.Swiber Holdings LimitedSingapore Oilfield Services Company Falls Victim to Depressed Oil Prices Overview¯ Swiber Holdings Limited (Swiber), founded in 1996, is a Singapore-based company engaged in offshore marine engineering, vessel owning and chartering, and provisions of corporate services.¯ Swiber does not have any long-term debt rated by Moodys Investors Service, but Moodys Analytics Public Expected Default Frequency (EDFTM) model provides a market-based assessment of the credit risk of the company. As of August 31, Swibers one-year probability of default stands at 31.83%. This is consistent with a C-rated credit.¯ Earlier this year, Swiber reported that annual net income swung from a gain of $22.53 million in 2014 to a loss of $23.39 million in 2015. On July 28, the company announced its decision to file an application to wind itself down, and shortly after placed itself under judicial management.¯ Swibers probability of default began increasing as early as July 2014, with the pace of increase accelerating significantly over the past 15 months. For a full year prior to Swibers liquidation filing, its EDF measure mapped to a non-investment grade implied rating.¯ The elevated level of Swibers one-year EDF measure reflects investors growing concerns over the companys rising debt levels and depressed oil prices, which have stayed under $51 since last August. Ongoing deterioration in the companys credit risk profile has been primarily driven by an increase in its market leverage, which represents financial risk.¯ The le...
