Moody's may upgrade Complete Production

Moody's Investors Service said it placed Complete Production Services, Inc.'s B2 corporate family rating and B2 senior secured credit facilities on review for possible upgrade. Moody's expects to complete the review shortly after the release of the company's third-quarter results.

The agency said the review is prompted by Complete Production's progress in integrating the three oilfield services companies that were combined in Complete Production's formation in September 2005 and its movement from niche player to a more significant market position in its chosen North American basins. The company also successfully raised $290 million in net proceeds from its April 2006 initial public offering, about a third of which was used to pay down revolver borrowings and two-thirds of which has been or will be used to fund acquisitions.

While absolute debt reduction has been limited, the equity offering and acquisitions combined with robust market conditions have resulted in meaningful leverage reduction, Moody's said: last-12-months debt to EBITDA fell to 2 times at June 30 from 3.4 times at Dec. 31.

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