Moody’s rates CGG notes B3

Moody’s Investors Service said it rated CGG SA’s $1.2 billion equivalent of backed senior secured notes due 2027 B3. The agency plans to withdraw the legacy debt instrument ratings and CGG's subsidiary CGG Holding (U.S.) Inc., as soon as the new bond has been issued.

Also, Moody’s affirmed CGG’s B3 corporate family and B3-PD probability of default ratings assuming the group’s successful capital structure refinancing.

“With a leverage of about 16.5x and negative Moody's adjusted FCF of $ -173 million (excluding $ -72.5 million cash from discontinued operations) by year-end 2020, CGG is not in line with the expectations to maintain the B3 rating and positions CGG very weakly in the rating category. Notwithstanding, we have affirmed CGG's rating, taking into account about $283 million cash on balance per year end 2020 and access to an undrawn €100 million revolving credit facility (RCF) maturing in September 2025 pro forma of the refinancing coupled with the expectation that performance in the next 12-18 months will improve strongly on the back of rising oil prices,” the agency said in a press release.

The outlook is stable.

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