Moody's upgrades Seitel

Moody's Investors Service said it upgraded Seitel, Inc.'s corporate family rating and senior unsecured notes rating to Caa1 from Caa3 and the company's speculative-liquidity rating to SGL-2 from SGL-4.

At the same time, the agency said it revised the outlook to stable from negative.

"The two-notch upgrade reflects sharp improvements in Seitel's leverage and liquidity over the past 12 months as well as its outlook for better business conditions for seismic data services," noted Sajjad Alam, Moody's analyst.

In the first half of 2011, Seitel raised $125 million through a private equity offering and used those proceeds to reduce its debt burden by 30% and also obtained a new $30 million revolving credit facility to boost liquidity, the agency added.

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