S&P downgrades Seitel

Standard & Poor’s said it lowered its corporate credit rating on Seitel Inc. to CCC+ from B-. The outlook is stable.

At the same time, S&P lowered its issue-level ratings on the company’s senior unsecured notes to CCC+ from B-. There is no change to the 3 recovery rating on the unsecured notes, indicating that creditors could expect meaningful (50% to 70%; lower half of the range) recovery in the event of payment default.

“The downgrade reflects our expectation that U.S. oil and gas activity will decrease further in 2016 and an expected recovery in 2017 will be limited,” said S&P credit analyst Aaron McLean in a news release.

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