Fitch Affirms Tuscany International Drilling at 'B-', Outlook Negative; Withdraws Ratings

NEW YORK--()--Fitch Ratings affirms its 'B-' ratings on foreign and local currency Issuer Default Ratings (IDRs) of Tuscany International Drilling Inc. (Tuscany). The Rating Outlook is Negative. Fitch has simultaneously withdrawn the ratings.

KEY RATING DRIVERS

Affirm and Withdraw: Fitch has simultaneously affirmed and withdrawn its ratings due to lack of market interest.

The affirmation reflects Tuscany's limited liquidity position and its difficulties lowering leverage levels to be in line with Fitch's expectations due to drilling rigs coming out of contract as well as a contained number of unexpected contract cancellations. These events have hindered the company's ability to generate cash flow from operations as a large number of drilling rigs remain idle. Tuscany's ratings reflect the company's experienced management team and a technologically advanced asset fleet, which is either new or has been recently refurbished, and gives the company a competitive advantage. The ratings also incorporate a degree of counterparty credit risk in its diversified customer base, a relatively small rig fleet, and exposure to the cyclical and competitive onshore drilling industry.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 5, 2013);

--'Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers' (Nov. 20, 2013).

Applicable Criteria and Related Research:

Corporate Rating Methodology: Including Short-Term Ratings and Parent and Subsidiary Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715139

Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=721836

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=812597

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Contacts

Fitch Ratings, New York
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com
or
Primary Analyst
Associate Director
Giancarlo Rubio, +1-212-612-7899
or
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Director
Lucas Aristizabal, +1-312-368-3260
or
Committee Chairperson
Managing Director
Daniel R. Kastholm, CFA, +1-312-368-2070

Sharing

Contacts

Fitch Ratings, New York
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com
or
Primary Analyst
Associate Director
Giancarlo Rubio, +1-212-612-7899
or
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Director
Lucas Aristizabal, +1-312-368-3260
or
Committee Chairperson
Managing Director
Daniel R. Kastholm, CFA, +1-312-368-2070