Moody’s cuts Western Energy CFR to B2, notes to B3

Moody's Investors Service said it downgraded Western Energy Services Corp.'s corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and senior unsecured notes rating to B3 from B2.

The speculative grade liquidity rating was raised to SGL-1 from SGL-2.

The outlook remains stable.

"The downgrade reflects the anticipated decline in Western's cash flow in 2015 and 2016, which will result in debt to EBITDA metric rising toward 4x," Moody's analyst Paresh Chari said in a news release.

"Visibility for cash flow in 2016 is limited as Western will only have 10% of its fleet under contract, increasing the company's vulnerability to the spot market."

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