OREANDA-NEWS. Moody's Investors Service says that Anton Oilfield Services Group's increased financial leverage for the 12 months ended 30 June 2016 has no immediate impact on its Caa1 corporate family and senior unsecured bond ratings.

The ratings outlook remains negative.

"Anton's financial leverage increased in 1H 2016, driven mainly by weaker earnings as persistently low global oil prices reduced the demand for its drilling technology and well completion businesses," says Chenyi Lu, a Moody's Vice President and Senior Analyst.

"Anton's financial and liquidity positions remain weak for the parameters of its Caa1 rating category, and we expect its leverage to increase slightly over the next 12-18 months," adds Lu.

The company's adjusted debt/EBITDA rose to about 10.0x for the 12 months ended 30 June 2016 from 7.8x in 2015, mainly due to a decrease in EBITDA and despite a stable adjusted debt level of RMB2.5 billion at end-June 2016.

The persistent low global oil prices and intense competition resulted in lower revenue and a weaker adjusted EBITDA margin.