Moody’s cuts SESI

Moody’s Investors Service said it downgraded SESI Inc. (Superior Energy) to Caa3 from B3, the probability of default rating to Caa3-PD from B3-PD, the senior unsecured notes to Caa3 from Caa1 and the speculative grade liquidity rating to SGL-3 from SGL-2. SESI’s outlook was revised to negative.

These actions conclude the review of SESI’s ratings started on Dec. 20, Moody’s said.

“Superior Energy will face extremely difficult industry conditions through 2021 and is facing elevated risks of a debt restructuring as it needs to refinance a big maturity in December 2021, reduce debt and reposition its U.S. business to remain viable over the long term,” said Sajjad Alam, a Moody’s senior analyst, in a press release.

“The company announced on May 20, 2020 that it has terminated the planned merger with Forbes Energy Services Ltd. (Forbes, unrated) and will not move forward with the related note exchange offer,” Alam said.

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