Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Valaris LimitedGlobal Credit Research - 20 Jan 2022New York, January 20, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Valaris Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 19 January 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.Valaris Limited's (Valaris) B3 Corporate Family Rating (CFR) reflects its high financial leverage, improving but highly competitive offshore drilling industry conditions that will continue to pose elevated re-contracting risks over the medium term, and the company's significant ongoing rig reactivation costs that will likely produce negative free cash flow through mid-2022. Valaris' ratings are supported by its strong market position as one of the largest and most diversified offshore drilling contractors, significant and increasing contracted revenue backlog supported by favorable energy price fundamentals, strong relationship with Saudi Aramco (A1), and low debt level and good liquidity following a restructuring. The company has successfully executed numerous drilling contracts since mid-2021 which should help attain breakeven cash flow sooner than previously anticipated.This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodology used for this review was Oilfield Services published in August 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Sajjad Alam VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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