Moody's cuts ION Geophysical, notes

Moody's Investors Service said it downgraded ION Geophysical Corp.'s corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, its $175 million senior secured notes to Caa1 from B3 and its speculative grade liquidity rating to SGL-3 from SGL-2.

The outlook is negative.

"ION's ratings downgrade and negative outlook reflects weaker fundamental performance than originally anticipated in the B2 CFR rating," Moody's vice president Gretchen French said in a news release.

"In addition, the company has not built up its cash cushion as previously factored into the B2 rating, leaving the company with less financial flexibility to fund potential legal contingencies and weather industry cycles."

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