S&P: Allis-Chalmers view positive

Standard & Poor's said it revised the outlook on Allis-Chalmers Energy Inc. to positive from stable and affirmed its B corporate credit rating.

The revised outlook reflects Allis' improved scale and scope, the agency said, and management's adherence to its financial policy of 3 times debt to EBITDA.

S&P said Allis has diversified its service offerings and expanded internationally.

The speculative-grade rating reflects the integration risk associated with the growth strategy, the company's small size and the highly cyclical nature of the oilfield services industry, the agency said.

As of Sept. 30, the issuer's debt-to-EBITDA ratio was slightly less than 3 times.

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