The credit ratings agency described yesterday’s tender offerfor $500m of senior secured notes as “credit positive”.
"If all the bonds are tendered, BW's total borrowingswill reduce by $500m,” it said in a report today.
"BW will also save $33 million on interest expensesevery year, thereby increasing its cash flows," said Vikas Halan, aMoody's vice president and senior analyst.
The Singapore-based group can easily afford to cover the buyback with $800mof cash on hand raised from equity and debt issues late last year, Moody’s says.
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