S&P upgrades Keane loan

S&P said it affirmed the B+ rating on Keane Group Inc.

The agency also said it raised the rating on Keane's $350 million senior secured term loan due in 2025 to BB from BB- and revised the recovery rating to 1 from 2, indicating 90% to 100% expected default recovery.

Keane and C&J Energy Services Ltd. have entered into a definitive agreement to combine both companies through an all-stock merger, S&P said.

The deal will improve the scale of Keane's existing pressure pumping, wireline and cementing operations, the agency said, and expand its presence in key basins across the United States, including the Permian Basin.

The stable outlook reflects an expectation that the company's leverage metrics will remain strong over the next 12 months, despite the challenging conditions facing the onshore U.S. oilfield services sector and the acquisition integration, S&P said.

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