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 B+.

The outlook remains negative.

The agency also lowered the issue-level rating on the company's senior unsecured notes to B from BB- and revised the recovery rating to 3 from 2, indicating an expectation of meaningful (50% to 70%; upper half of range) recovery in the event of a payment default.

"The downgrade reflects a weakening in our base case forecast, reflecting continued reductions in capital spending by oil and gas exploration and production (E&P) companies," S&P credit analyst Michael Tsai said in a news release.

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