S&P downgrades UTEX, debt

Standard & Poor's said it lowered its corporate credit rating on UTEX Industries Inc. to B- from B.

The outlook is stable.

At the same time, the agency lowered the issue-level rating on UTEX’s first-lien debt to B- from B and on the second-lien debt to CCC from CCC+. The recovery rating is 3 on the first-lien debt, indicating an expectation of meaningful (50% to 70%; upper half of range) recovery, and 6 on the second-lien debt, indicating an expectation of negligible (0% to 10%) recovery, in the event of a payment default.

"The downgrade reflects our expectation for continued weakening in oilfield services markets driven by the significant decrease in capital spending by the exploration and production industry, which will result in lower-than-expected financial measures for the company," S&P credit analyst Michael Tsai said in a news release.

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