S&P rates Keane B+, loan BB-

S&P said it assigned its B+ corporate credit rating to Keane Group, Inc.

The outlook is stable.

At the same time, the agency assigned its BB- issue-level rating to Keane's proposed $350 million senior secured term loan due 2025. The recovery rating is 2, indicating an expectation of substantial (70% to 90%; rounded estimate: 75%) recovery in the event of a payment default.

“The rating on Keane primarily reflects our assessment of its participation in the highly cyclical and competitive U.S. oilfield services industry, modest size and scale relative to larger peers, lack of product diversity, and expectation of volatile profitability due to inherent business dynamics,” S&P said in a news release.

“The rating is supported by the company's geographic diversity across U.S. basins and low leverage measures.”

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