S&P rates Geophysical Substrata notes B

S&P said it assigned a B long-term issuer credit rating to Geophysical Substrata Ltd.

The agency also said it assigned a B long-term issue rating to the company's senior unsecured notes under its $400 million medium-term note program and the drawdown under the same.

The outlook is stable.

The raitngs reflect Geophysical's small scale, limited market share and single weak customer in the oilfield services business, S&P said.

The company's sizable related-party advances and shareholder distributions in the past weigh on its credit profile, the agency said.

Tempering these weaknesses are Geophysical's steady operating cash flows, revenue diversity from two uncorrelated business segments and margins that are better than the industry average, S&P said.

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