S&P affirms Calfrac

Standard & Poor's said it affirmed the B+ long-term corporate credit and senior unsecured debt rating on Calfrac Well Services Ltd. and the B+ senior unsecured debt rating with 3 recovery rating on Calfrac Holdings LP.

The outlook is stable.

Ratings reflect the company's participation in the cyclical oil and natural gas well servicing sector, the high level of competition in a fragmented market and exposure to variable internal cash flow generation and profitability, the agency said.

Calfrac's conservative balance sheet and its ability to generate consistent and strong EBITDA margins have helped offset these weaknesses, S&P noted.

As of March 31, total debt-to-EBITDA ratio is 1.5 times.

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