Moody’s downgrades SESI, notes

Moody's Investors Service said it downgraded SESI, LLC's (Superior Energy) corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and senior unsecured notes to B3 from B2.

The speculative grade liquidity rating was affirmed at SGL-3.

The outlook was revised to stable from negative.

"The downgrade reflects our view that SESI will have to contend with high financial leverage and limited financial flexibility at least through mid-2018 despite improving industry conditions," Moody's senior analyst Sajjad Alam said in a news release.

"We believe the sector's recovery will be protracted and significant reactivation costs, working capital requirements and cost inflation will limit SESI's ability to substantially enhance liquidity, reduce debt and reinvest in new equipment."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.