Moody’s cuts Basic Energy’s notes

Moody's Investors Service said it downgraded Basic Energy Services, Inc.’s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD. The agency also cut the rating on Basic Energy’s senior secured 2023 notes to Caa2 from B3 and the speculative grade liquidity rating to SGL-3 from SGL-2.

“The downgrade of Basic's ratings to Caa1 reflects slow recovery in the business amid a decelerating market outlook, that we expect will keep financial leverage high. The company's cash balances support its liquidity position, while Basic is cutting costs and reduces investment in 2019,” said Elena Nadtotchi, Moody's senior credit officer, in a press release.

The outlook is stable.

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