S&P gives B to Iracore notes

Standard & Poor's said it assigned its B- corporate credit rating to Iracore International Holdings Inc. The outlook is stable.

S&P also assigned a B issue-level rating (one notch above the corporate credit rating) to Iracore's proposed $110 million senior secured notes due 2018. S&P assigned the notes a 2 recovery rating, indicating an expectation of substantial (70% to 90%) recovery in the event of a payment default.

"The ratings on Iracore reflect our view of the participation in the cyclical and competitive oilfield services industry, the company's small size and scale of operations, and the limited diversity of its customers and suppliers," said S&P credit analyst Christine Besset in a news release.

S&P's ratings also reflect Iracore's growing market share in lined-pipes used for the Canadian oil sands, its strong profitability, low capital spending requirements, and moderate debt leverage, the agency said.

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