Fitch cuts Anton Oilfield to B+

Fitch Ratings said it downgraded Anton Oilfield Services Group's long-term issuer default rating and senior unsecured rating to B+ with a recovery rating of RR4 from BB-.

The outlook remains negative.

Fitch said the downgrade reflects Anton's tightening liquidity, which stems from a rise in short-term debt to fund working capital needs, growth in operating expenses despite revenue contraction, and continuing high capex for 2015, amid challenging market conditions. Anton's business mix has also tilted towards overseas markets, especially Iraq, which elevates the company's business risk.

The negative outlook captures uncertainties over the company's ability to aggressively cut costs and to continue to secure new orders at reasonable margins, the agency said.

Anton Oilfield also has considerable refinancing requirements over the next 18 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.