04 December 2011
MUSCAT: Standard & Poor's (S&P) Ratings Services said yesterday that it lowered its long-term corporate credit ratings of Oman-based oil field services group MB Holding (MBH) and its oil field services subsidiary MB Petroleum Service (MBPS) to 'B-' from 'B+'. The outlook on both entities is stable.
In addition, S&P has lowered the company's issue rating on the $320 million senior unsecured bond issued by finance subsidiary MBPS Finance Company to 'CCC+' from 'B+'.
The two-notch downgrade follows downward revision of the group's financial risk profile to highly leveraged from aggressive, said a statement from the credit ratings services.
This revision reflects the group's corporate governance as highly aggressive following a larger shareholder payment and higher spending in 2011than previously anticipated, said S&P.
In light of these factors, Standard & Poor's has revised downward assessment of MBH's liquidity to weak from less than adequate under our criteria.
The liquidity assessment also reflects the material increase in the group's debt in 2011 to date, which is greater than it was previously forecast (in part due to the shareholder payment). In addition, forecast for operating performance at MBH's subsidiary MBPS for the year to December 31 has been lowered.
MUSCAT: Standard & Poor's (S&P) Ratings Services said yesterday that it lowered its long-term corporate credit ratings of Oman-based oil field services group MB Holding (MBH) and its oil field services subsidiary MB Petroleum Service (MBPS) to 'B-' from 'B+'. The outlook on both entities is stable.
In addition, S&P has lowered the company's issue rating on the $320 million senior unsecured bond issued by finance subsidiary MBPS Finance Company to 'CCC+' from 'B+'.
The two-notch downgrade follows downward revision of the group's financial risk profile to highly leveraged from aggressive, said a statement from the credit ratings services.
This revision reflects the group's corporate governance as highly aggressive following a larger shareholder payment and higher spending in 2011than previously anticipated, said S&P.
In light of these factors, Standard & Poor's has revised downward assessment of MBH's liquidity to weak from less than adequate under our criteria.
The liquidity assessment also reflects the material increase in the group's debt in 2011 to date, which is greater than it was previously forecast (in part due to the shareholder payment). In addition, forecast for operating performance at MBH's subsidiary MBPS for the year to December 31 has been lowered.
© Times of Oman 2011
