S&P gives Key Energy B+

Standard & Poor's said it assigned its B+ corporate credit rating and stable outlook to Key Energy Services Inc.

At the same time, the agency said it assigned a B rating to the company's proposed $400 million senior notes due 2017, adding that proceeds from the offering will be used to help fund the acquisitions of Moncla Cos. and Advanced Measurements Inc. and to refinance existing debt.

The ratings on Key reflect the highly volatile nature of the well-servicing industry, limited business diversity and an aggressive growth strategy based on acquisitions, S&P said, adding that they also reflect our concerns about the risks associated with the company's ongoing initiatives to rectify its historical accounting control problems.

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