S&P: Basic Energy Services Inc. Downgraded To 'CC' On Deferred Coupon Payment; Outlook Negative
"The downgrade follows Basic's announcement on Aug. 15, 2016, that it has decided to defer the coupon payment on its senior unsecured notes maturing 2019," said S&P Global Ratings credit analyst Christine Besset. "The payment due date was Aug. 15, 2016, and Basic is using the 30-day grace period provided in the notes' indenture because the company is in the process of restructuring its balance sheet," she added.
We believe that the company is likely to announce a capital restructuring or make the payment within the 30-day grace period.
The negative outlook on Basic Energy Services Inc. reflects our view that the company will likely announce a distressed exchange within the next couple of months.
We could consider raising the rating if we expect the company will be able and willing to pay all debt obligations in full and on time.
Комментарии