September 27, 2012 / 7:11 PM / 5 years ago

TEXT-S&P rates Bristow Group notes 'BB'

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 
be "adequate". 


     -- 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/--

New Rating
Senior unsecured
 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 All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at Use the Ratings search box located in the left 

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