Fitch Downgrades Offshore Drilling Holding's IDRs to 'C' on Exchange Offer

Fitch Ratings downgraded Offshore Drilling Holding, S.A.'s (ODH) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'C' from 'CC,’ Fitch Ratings reported. Fitch also downgraded the company's USD950 million senior secured notes due Sept. 20, 2020 to 'C'/'RR4' from 'CC'/'RR4'. The downgrade reflects ODH's ongoing negotiation with its bondholders' representatives regarding a potential restructuring of the company's capital structure, as disclosed on Aug. 11, 2020. The company received a proposal for potential restructuring from noteholders on July 21, 2020, which was countered with revised terms. Negotiations are still ongoing and an agreement could be reached before the notes mature on Sept. 20, 2020. Fitch views the potential restructuring a distressed debt exchange (DDE) as per the DDE criteria. Read more

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