Moody's gives Hornbeck Offshore notes Ba3

Moody's Investors Service said it affirmed the Ba3 corporate family rating and the Ba3 rating on the existing $225 million senior unsecured notes for Hornbeck Offshore Services, Inc. while also assigning a Ba3 to the company's proposed $75 million senior unsecured notes add-on offering.

The outlook remains stable.

Moody's said the Ba3 ratings are restrained by Hornbeck's concentration of the OSV business in the very commodity price sensitive and increasingly competitive deepwater GOM and the general cyclicality of the OSV business as it relies on the exploration and production.

The rating are supported by the company's position as the second largest new generation OSV operator in the very active GOM as well as the increasing asset mix/value, which is comprised of the youngest and highest specification supply vessel fleets within the sector and will be enhanced by the new-build program as well as the conversion of the 370' sulfur vessels into multi-purpose supply vessels.

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