Oil Services & Drillers Brace For S&P Ratings Cut (ALY, HERO, PKD)

Banking, finance, and taxes

Published: February 5, 2009 4:39 pm

Last Updated: April 28, 2020 3:07 am

Oil_well_image Standard & Poor’s Ratings Services downgraded several oilfield services and drilling companies. Among the companies the ratings agencies took action were Allis-Chalmers Energy Inc. (NYSE: ALY), Hercules Offshore Inc. (NASDAQ: HERO) and Parker Drilling Co. (NYSE: PKD). The problem is that it does not stop here. S&P said its review is not over and it expects more negative ratings actions over the coming days.

S&P expects thatfinancial performance and credit quality will deterioratesignificantly. It lists those exposed to land and shallow waterdrilling activity and voices concern that some players may bump upagainst covenants governing their credit facilities.

S&P expects meaningful cuts announced in North American explorationand production in 2009 and possibly 2010. Below are the downgrades:

Downgraded                            To             From
Allis-Chalmers Energy Inc.
Corporate credit rating       B/Negative/–    B+/Negative/–
Outlook Action                         To             From
Hercules Offshore Inc.
Corporate credit rating       BB-/Negative/– BB-/Stable/–
Parker Drilling Co.
Corporate credit rating       B+/Stable/–    B+/Positive/–
Stewart & Stevenson LLC
Corporate credit rating       B/Stable/–    B/Positive/–
Global Geophysical Services Inc.
Corporate credit rating       B-/Negative/– B-/Developing/–

Jon C. Ogg
February 5, 2009

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.