Fitch lowers Anton to negative

Fitch Ratings said it revised the outlook on Anton Oilfield Services Group to negative from stable and affirmed the company’s long-term issuer default rating and senior unsecured rating at BB.

The negative outlook reflects several challenges that Anton faces, including a competitive operating environment squeezing its margins, reduced capital expenditure by customers in China and a longer working capital cycle that is dampening net cash flow generation, Fitch said.

While the agency said it expects the order flow to independent oilfield services providers to improve in the coming months, the company will have to deal with trends of higher competition, lower margins and higher accounts receivable days.

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