S&P: McDermott view now negative

Standard & Poor's said it revised its outlook on McDermott International Inc. to negative from stable and affirmed its ratings on McDermott, including the BB corporate credit rating.

The outlook revision reflects the potential risks of further execution missteps or project losses, like those experienced in 2013. As a result of losses in 2013, S&P said it believes credit metrics will be worse than S&P's expectations for the current rating in 2014, with adjusted debt to EBITDA greater than 4x.

However, if the company successfully executes its backlog of projects as well as the business improvement initiatives from new senior management, S&P said it expects debt to EBITDA to return to less than 4x by 2015.

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