S&P lifts Newpark

Standard & Poor's said it raised its corporate credit rating on Newpark Resources Inc. to B from B-.

The outlook is stable.

"The rating action reflects an improvement in Newpark's financial performance stemming from increased activity in the North American land-based oilfield service industry," said S&P credit analyst Amy Eddy.

According to the agency, Newpark has benefited from the increased rig count as evidenced by its first-half 2010 EBITDA of close to $50 million compared with an EBITDA loss of close to $10 million in the first half of 2009.

Newpark's credit measures, on a first-half annualized basis, are healthy for the rating with debt to EBITDA of slightly more than 1.5x and an interest coverage ratio of roughly 10x, the agency noted.

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