S&P: IG Seismic, Geotech on negative watch

Standard & Poor’s said it placed the B long-term global scale corporate credit rating on IG Seismic Services plc and Geotech Seismic Services on CreditWatch with negative implications.

The agency also said it placed the ruA- Russia national scale rating on Geotech on CreditWatch negative.

The CreditWatch placement reflects a view that IG Seismic’s liquidity has weakened in the past few months, S&P said.

The company used a meaningful portion of available liquidity sources to service its debt maturities in the second quarter of 2015, the agency said, and its capital structure may have shifted toward shorter-term financing.

The company also is currently negotiating to refinance its short-term maturities, S&P added. If successful, this could allow the company to restore its liquidity to adequate as defined in the agency’s criteria.

However, S&P said it does not expect IG Seismic to be unable to secure the rollover of its short-term bank lines.

Challenging industry conditions also are expected to continue in the medium term, which could lead to further weakening of the companies’ leverage and liquidity, the agency said.

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