Seaport Global Securities Downgrades Seadrill Partners LLC (SDLP) to Neutral

Seaport Global Securities downgraded Seadrill Partners LLC (NYSE: SDLP) from Buy to Neutral.

Analyst Sunil Sibal commented, "We are reducing our rating to Neutral from Buy for SDLP. Management announced a distribution cut to a quarterly rate of $0.25/unit (~55% reduction) and plans to use the savings from the distribution cut to pay down debt. We believe that continued pressure on the commodity complex and reduced spending plans of its customers have also reduced SDLP's ability to blend and extend contracts for its rigs as contracts start rolling off in 2017. We are also withdrawing our former $15 price target."

For an analyst ratings summary and ratings history on Seadrill Partners LLC click here. For more ratings news on Seadrill Partners LLC click here.

Shares of Seadrill Partners LLC closed at $3.12 yesterday.

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