S&P cuts Allis-Chalmers

Standard & Poor's said it lowered its corporate credit and issue-level ratings on Allis-Chalmers Energy Inc., reflecting the completion of tender offers for a portion of the company's senior unsecured debt.

The agency said it lowered the corporate credit rating to SD (selective default) from CC and the issue-level rating on the company's unsecured debt to D from CC.

At the same time, the agency said it removed the ratings from Creditwatch, where they were placed with negative implications on May 22.

"We consider the completion of the tender offers, at a substantial discount to par to be distressed exchanges and, as such, tantamount to defaults under its criteria," said credit analyst Amy Eddy.

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