Odfjell Drilling gets stable credit ratings from Moody's, S&P Global

Odfjell Drilling Ltd. (ODL) announced new credit rating reports from Moody’s Ratings and S&P Global, both indicating a stable outlook for the company. Moody's assigned ODL a B1 rating, while S&P Global affirmed ODL's B+ rating.

Moody's noted that while a recent debt-funded rig acquisition increased ODL's gross leverage to 2.1x at year-end 2025, key credit metrics are expected to improve back to rating guidance by 2026. The B1 rating reflects ODL's strong operational track record and top-tier fleet. S&P Global affirmed its 'B+' issuer credit rating on ODL, citing an anticipated debt to EBITDA ratio of 1.5x-2.0x in 2026-2027 and superior profitability with EBITDA margins exceeding 40%. The 'BB' issue-level rating on the new $650 million senior secured notes reflects an expectation of very high (90%-100%) recovery.

The rig acquisition, valued at $480 million, is considered low risk by S&P Global due to a long-term contract with Equinor until Q1 2028, adding approximately $100 million to ODL’s annual EBITDA. This transaction is expected to boost backlog to $2.2 billion and ensure ample liquidity.