Moody's gives Ba2 to Anton Oil notes

Moody's Investors Service said it assigned a Ba2 corporate family rating to Anton Oilfield Services Group and a provisional Ba2 senior unsecured rating to its proposed dollar notes.

The outlook is stable.

Proceeds will be used to fund the company's capital expenditures and general working capital needs.

"Anton Oil's Ba2 corporate family rating reflects its leading position in the domestic oil services sector in China, which benefits from strong growth in natural gas production," Alan Gao, a Moody's vice president and senior analyst, said in a statement.

The Ba2 rating also recognizes Anton Oil's diversified revenue base, which is in turn supported by its integrated business model, as well as the company's competitive edge in technologies, Gao said.

"On the other hand, Anton Oil's Ba2 ratings are constrained by its relatively small revenue base," Gao noted.

The company's debt leverage is expected at 3 times to 3.5 times in the next 12 to 18 months, the agency noted.

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