Moody's could cut CGGVeritas

Moody's Investors Service said it placed all the ratings of Compagnie Generale De Geophysique-Veritas (CGGVeritas) and CGGVeritas Services, Inc. under review for downgrade.

Moody's said the review follows CGGVeritas' announcement of the acquisition of the Geoscience division of Fugro NV excluding multi-client library and ocean bottom nodes businesses.

Moody's said the action reflects its expectation that the incremental debt associated with the acquisition may result in through-the-cycle leverage remaining materially above 3x and credit metrics that may no longer be appropriate for the Ba2 rating.

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