Moody’s downgrades SESI

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 SGL-2 speculative grade liquidity rating was affirmed.

The outlook was changed to negative from stable.

“The downgrade reflects SESI's weak cash flow generation prospects in a challenged oilfield services industry landscape and increased refinancing risk,” Sajjad Alam, Moody's senior analyst, said in a news release.

“Pricing conditions in U.S. OFS markets deteriorated during the first half of 2019, and service companies like SESI will continue to struggle amid volatile commodity prices, declining E&P capital spending, and more difficult capital market access.”

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