McDermott Upgrades by Credit Rating Agencies
Both of McDermott major corporate credit rating services, Standard & Poor's and Moody's, have recently upgraded their respective ratings of McDermott and its rated subsidiaries.
Included among the recent ratings activity, McDermott's corporate credit rating at S&P was raised to BB from B+, with a stable outlook, and the Company's corporate family rating at Moody's was raised to Ba3 from B1, also with a stable outlook.
'McDermott is pleased to have the major rating services publicly recognize the continued improvement in our operations and financial profile,' said Michael S. Taff, Senior Vice-President and Chief Financial Officer. 'Although the Company remains virtually debt free and in a strong net cash position, higher ratings will lower the current costs of our letters-of-credit and improve McDermott's overall financial flexibility.'
As a result of recent improved operating performance, stronger liquidity and now higher credit ratings, McDermott has initiated negotiations with the respective agents and lenders on two of its subsidiaries' credit agreements to amend the facilities to reduce fees and expenses, in addition to other modifications.
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