S&P cuts IG Seismic, Geotech Seismic to B-

S&P said it lowered its long-term corporate credit rating on IG Seismic Services plc and its core subsidiary Geotech Seismic Services to B- from B.

At the same time, the agency lowered its Russia national scale rating on Geotech to ruBBB- from ruBBB+.

All the ratings were placed on CreditWatch with negative implications.

S&P said the downgrade of IG Seismic reflects its expectation, firstly, that the company's credit metrics will remain weak in 2016-2017 due to challenging market conditions and onerous interest payments.

Secondly, it factors in IG Seismic’s aggressive approach toward refinancing, which is not commensurate with a B rating, in the agency’s view.

The company has not yet secured financing to address the put option, which falls due on its RUB 3 billion bond in October 2016. This has also lead S&P to place the rating on CreditWatch pending confirmation of the completed refinancing, according to an agency press release.

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