S&P lowers FTS International

Standard & Poor's said it lowered its corporate credit rating on FTS International Services LLC to B from B+. The outlook is negative.

The agency said it lowered its issue rating on the company's senior unsecured debt to BB- from BB. The recovery rating remains 1. The agency said it also lowered its issue rating on the term loan held at the company's parent, FTS International Inc., to B from B+. The recovery rating remains 4.

"As a pure-play fracturing services provider, FTS has already experienced lower margins over the past two quarters and we have reduced our margin and EBITDA estimates for the remainder of 2012 and 2013," said S&P credit analyst Carin Dehne-Kiley in a news release.

"As a result, we expect credit protection measures at the end of 2013 to weaken beyond levels appropriate for the B+ rating category, and thus we are lowering the corporate credit rating on FTS to B."

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