S&P affirms Basic Energy, recovery rating revised to 2

Standard & Poor's said it affirmed its B corporate credit rating on Basic Energy Services LP and its B rating on the company's amended and restated credit facilities. S&P also revised its recovery rating on the facilities to 2 from 3.

S&P said the ratings on oilfield services company Basic reflect its below-average business profile, based on its position as the third-largest participant in a volatile, cyclical, capital-intensive, and highly competitive industry, which is exacerbated by an aggressive growth strategy and a substantial debt burden.

The company's 2004 EBITDA is expected to range from $55 million to $65 million, with debt to EBITDA below 3x and EBITDA interest coverage near 7x.

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