S&P lowers Basic Energy notes

Standard & Poor's said it lowered its corporate credit rating on Basic Energy Services Inc. to B from B+.

The outlook is negative.

S&P said it also lowered its ratings on Basic's secured notes to B+ from BB-. The recovery rating remains unchanged at 2.

The issue-level rating on Basic's senior unsecured notes remains B-, but S&P revised the recovery ratings on the unsecured issues to 5 from 6.

S&P said it expects that Basic's credit measures will remain depressed over the near term until pricing and equipment utilization improve.

The negative outlook is based on S&P's concerns that Basic's credit measures will remain weak through mid-2010 and potentially through 2010.

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