Banking, finance, and taxes
Oil Services & Drillers Brace For S&P Ratings Cut (ALY, HERO, PKD)
Published:
Last Updated:
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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
