Moody’s cuts Light Tower Rentals to negative

Moody's Investors Service said it affirmed Light Tower Rentals, Inc.’s B2 corporate family rating and revised the outlook to negative from stable.

The agency also affirmed the B2-PD probability of default rating, B2 senior secured notes rating and the SGL-3 speculative grade liquidity rating.

"The negative outlook reflects Moody's weakening outlook on Light Tower's operating performance over the next 12 months as demand for its products exposed to drilling and completion remains at soft levels," Moody's analyst Morris Borenstein said in a news release.

"While Light Tower can reduce its capex to partially mitigate earnings declines, sustained weakness in 2016 could lead to further negative rating pressure."

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