S&P ups Basic Energy

Standard & Poor's said it raised the corporate credit rating on Basic Energy Services, Inc. to B+ from B and the issue rating on Basic's notes to B from B-. The recovery rating remains 5.

The outlook is stable and reflects the expectation that Basic will maintain operating and financial performance consistent with recent quarters.

The rating action follows the strong performance of Basic in the oilfield services sector recently and the expectation that the well completion and servicing segments will not significantly recede from its recent gains over the next year, the agency said.

The ratings on Basic reflect its highly leveraged financial risk profile and weak business risk profile as well as the highly cyclical and competitive U.S. oilfield services market, the agency said.

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