S&P affirms Allis-Chalmers

Standard & Poor's said it affirmed its B- rating on Allis-Chalmers Energy Inc.'s proposed $80 million senior note issuance due 2014 as well as the B- corporate credit rating on the company.

The outlook is stable.

The agency noted that on April 27, Allis-Chalmers agreed to purchase Drilling Logistics & Services Company for $93.2 million in cash plus 2.5 million shares of Allis-Chalmers' common stock.

S&P added that the acquisition entails significant integration risk, noting that it represents the company's first material operations outside the United States and its first venture into the land-rig business.

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