Moody's drops Stallion

Moody's Investors Service said it downgraded Stallion Oilfield Services Ltd.'s probability of default rating to D from Caa3 and its corporate family rating to Ca from Caa3.

Moody's said it also downgraded the company's $75 million senior secured term loan and $175 million senior secured revolver ratings to B3, LGD 2 (13%) from B2, LGD 2 (12%).

The $265 million senior unsecured notes and $250 million senior unsecured term loan ratings remain unchanged at Ca, LGD 4 (69% changed from 68%), the agency noted.

The outlook is negative.

This rating action follows Stallion's non-payment of the required interest on its senior unsecured notes and term loan in August 2009 and the expiration of the respective 30 day cure periods, the agency said.

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