S&P ups Key Energy view to stable

Standard & Poor's said it affirmed the BB- corporate credit rating on Key Energy Services Inc. and revised the outlook to stable from negative.

The outlook stabilization reflects the improvement in the North American oilfield services market, Key's solid liquidity pro forma for the sale of its pressure-pumping business and the company's improving debt leverage measures, S&P said.

The ratings reflect the company's high debt leverage and expectations for improving industry conditions in 2010, the agency said.

The ratings also encompass Key's limited business diversity and an aggressive growth strategy based on acquisitions, S&P said.

Factors that support ratings include Key's good liquidity, a greater exposure to crude oil well maintenance business and its strong market share position in most workover rig markets, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.