S&P cuts Geophysical Substrata

S&P said it lowered its long-term issuer credit and issue ratings on Geophysical Substrata Ltd. and its senior unsecured notes to B- from B.

“We lowered the ratings because we believe Geophysical’s weakening governance practices have undermined its creditworthiness. Continuing shareholder distributions and related-party transactions also weigh on the company’s liquidity amid a substantial debt-funded capital expenditure (capex) program,” said S&P in a press release.

The outlook is stable.

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