Moody's pumps up Welltec

Moody's Investors Service said it upgraded Welltec International APS' long-term corporate family rating to Ba3 from B1, the probability of default rating to Ba3-PD from B1-PD and the company's backed senior secured notes rating to Ba3 from B1.

“Welltec's strong operating performance and application of free cash flow to debt reduction in 2023, with expectations for additional gross debt reduction in 2024, drove the upgrade. Lower gross debt enables Welltec to maintain credit metrics commensurate with a Ba3 rating through cycles of the oil and gas end market.

“Furthermore, Moody's expects stable operating performance supported by solid demand for oil field services over the next couple years will put the company in a solid position to refinance its capital structure well in advance of the October 2026 backed senior secured notes maturity,” the agency said in a press release.

The outlook remains stable.

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