Moody’s lowers Western Energy, notes

Moody's Investors Service said it downgraded Western Energy Services Corp.'s corporate family rating to Caa2 from B2, probability of default rating to Caa2-PD from B2-PD and senior unsecured notes rating to Caa3 from B3.

The speculative grade liquidity rating was lowered to SGL-3 from SGL-1.

The outlook is stable. This action resolves the review for downgrade that was initiated on Jan. 21.

"The downgrade reflects the anticipated decline in Western's cash flow in 2016 and 2017, which will result in debt to EBITDA metric rising above 10x," Moody's analyst Paresh Chari said in a news release.

"Visibility for cash flow for the next two years is limited as Western currently has only 10% of its fleet under contract. We expect increased pricing pressure leading to margins being compressed as its contracted rigs transition to the spot market."

© 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.