12:55 PM EDT, 04/05/2024 (MT Newswires) -- S&P Global Ratings on Friday revised its outlook on Precision Drilling ( PDS ) to positive from stable and affirmed the B+ issuer credit rating.

Also, the rating agency affirmed the B+ issue-level rating on the company's senior unsecured notes while revising the recovery rating to 3 from 4.

The positive outlook reflects the rating agency's view that Precision will continue to repay debt and generate improved credit measures over the next 12 months, with adjusted funds from operations to debt averaging close to 60% and adjusted debt to EBITDA of about 1.5x.

The company reduced its absolute debt by close to C$800 million over the past five years. S&P is expecting a further debt reduction from free cash flows through 2025.

The agency believes that the lower gross debt levels will allow the company to sustain improved credit measures through the commodity cycle.

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