Sept 27 - Standard & Poor's Ratings Services today assigned its 'BB' issue
rating to Bristow Group Inc.'s proposed $425 million senior unsecured
note offering. We have assigned a '4' recovery rating to this debt, indicating
our expectation of average (30% to 50%) recovery, albeit at the low end of this
range, in the event of payment default. Our 'BB' corporate credit rating and
negative outlook on the company remains unchanged.
Bristow plans to use the proceeds to redeem its $350 million of senior
unsecured notes due 2017 and for general corporate purposes, including
repayment of other debt. As of June 30, 2012, Bristow had slightly more than
$1 billion of Standard & Poor's adjusted debt.
The ratings on Houston-based Bristow Group Inc. (Bristow) reflect Standard &
Poor's Ratings Services' view of its participation in the highly cyclical and
volatile oil and gas industry, exposure to weather and seasonal fluctuations
that might limit flight hours, aggressive financial policy, and the capital
spending needs inherent in the aviation industry. Our ratings also reflect
that Bristow's earnings and funds from operations (FFO) tend to be more stable
than its oilfield services peers' due to contract structure, geographic
diversity, and its mostly production-oriented (versus development work for
exploration and production companies). We consider Bristow's business risk to
be "fair", its financial risk to be "aggressive", and sources of liquidity to
RELATED RESEARCH AND CRITERIA
-- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18,
-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
-- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009.
-- Corporate Ratings Criteria 2008, published April 15, 2008.
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
Bristow Group Inc.
Corporate credit rating BB/Negative/--
Proposed $200 mil notes due 2022 BB
Recovery rating 4
Proposed $225 mil notes due 2020 BB
Recovery rating 4
Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left