S&P gives Allis-Chalmers Energy, notes B-

Standard & Poor's said it assigned its B- corporate credit rating to Allis-Chalmers Energy Inc. and its B- rating to Allis' proposed $150 million senior unsecured notes due 2014.

The outlook is stable.

S&P said the corporate credit rating reflects Allis' limited track record and small size, the integration risk related to the company's several recently completed acquisitions and the larger proposed Specialty Rental Tools Inc. acquisition.

These risks are only partially mitigated by the favorable near-term outlook for oilfield services and the business' low capital requirements, the agency added.

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