S&P cuts Northern Offshore to CC

Standard & Poor's said it cut its long-term corporate credit and senior unsecured debt ratings on Bermuda-based oil drilling company Northern Offshore Ltd. to CC from CCC- and placed the ratings on CreditWatch with negative implications.

S&P said the rating action reflects the considerable uncertainty over the company's payment, which is due Nov. 15, of a $7.16 million coupon on its outstanding $143.3 million senior bond, which matures in 2005.

"The terms of the bond include a 30-day grace period, but Standard & Poor's does not have sufficient evidence that the payment can be made within this period," S&P credit analyst Emmanuel Dubois-Pelerin said. "Therefore, unless such evidence is received, the ratings on Northern Offshore will be lowered to 'D' (default) on November 17."

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