Moody's assigns Green Field, notes Caa2

Moody's Investors Service said it assigned a Caa2 corporate family rating to Green Field Energy Services, Inc. and a Caa2 rating to its proposed offering of $250 million senior secured notes due 2016.

The outlook is stable.

The proceeds will be used to fund capital expenditures, repay existing debt and repay a prepayment from Shell Western Exploration and Production Inc.

The ratings reflect the company's small size and early stage in the hydraulic fracturing business, the main driver of its capital spending program and growth profile, Moody's said.

The ratings also consider the company's high leverage relative to historical cash flows and fixed assets, the agency said, and the need to establish performance credentials as a leveraged company operating in the competitive, cyclical and volatile oilfield services sector.

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