Moody’s cuts CGG, loans, notes

Moody's Investors Service said it downgraded CGG SA's corporate family rating to B1 from Ba3 and probability of default rating to B1-PD from Ba3-PD.

Concurrently, the agency downgraded to Ba1 from Baa3 the ratings on the senior secured French revolving credit facility and the senior secured U.S. revolving credit facility issued by CGG and CGG Holding (U.S.) Inc. respectively as well as from B1 to B2 the ratings on the senior notes issued by CGG SA.

The outlook remains negative.

Moody’s said the action reflects its expectations that the seismic industry will remain weak for an extended period of time with limited visibility around a potential recovery. Despite the capacity reductions in the industry, Moody's expects the market to remain oversupplied as oil companies scale back their exploration spending following the sharp fall in oil prices.

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