S&P cuts Key Energy, notes to B+

Standard & Poor's said it lowered its corporate credit rating on Key Energy Services Inc. to B+ from BB-.

The outlook is negative.

The agency also lowered the issue rating on Key Energy Services Inc.'s existing senior unsecured notes due 2021 to B+ from BB-. The recovery rating on this debt remains 4, indicating an expectation for average (30% to 50%) recovery in the event of a payment default.

"The downgrade reflects our more pessimistic base case forecast attributed to expected lower services demand tied to weaker crude oil prices, that we believe will extend the timetable for Key Energy Services Inc. to restore profitability," S&P credit analyst Mark Salierno said in a news release.

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