Moody's assigns ION B1, notes B2

Moody's Investors Service said it assigned a B1 corporate family rating and probability of default rating to ION Geophysical Corp.

Concurrently, Moody's said it also assigned a B2 (LGD5, 75%) rating to the company's proposed offering of $175 million of senior unsecured notes due 2013, adding that the proceeds of this offering will be used to refinance certain short-term indebtedness incurred to fund ION's acquisition of ARAM Systems Ltd.

The outlook is stable.

"ION's B1 rating reflects its leading market position in seismic equipment and proprietary leading edge technology," commented Pete Speer, Moody's vice president. "However, the rating is restrained by the volatile nature of demand for seismic services and data, which is often the first oilfield services sector to decline when E&P customers pull back their spending."

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