Moody’s downgrades Anton

Moody's Investors Service said it downgraded Anton Oilfield Services Group's corporate family and senior bond ratings to B2 from Ba3. The outlook remains negative.

"The ratings downgrade reflects its very weak H2 2014 results, which materially increased its debt leverage and further weakened its liquidity position, given the company's negative cash flow from operations," Chenyi Lu, a Moody's vice president and senior analyst, said in an agency news release.

"The ratings downgrade and the negative outlook also reflect our expectation that Anton's ability to meaningfully recover its profitability and financial leverage from the very weak levels seen in 2014 will be challenged by the ongoing weakness in oil prices."

Anton's ratio of adjusted debt to EBITDA rose to around 9.7 times in 2014 from 3.5 times in 2013. The agency said the deterioration was mainly because of poor results caused by delays in projects for some of the company’s major customers against the backdrops of lower oil prices and the anti-corruption campaign, higher pricing pressure and additional costs to support new business.

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