Moody's lifts CGGVeritas loans

Moody's Investors Service said it upgraded to Ba1 from Ba2 the ratings on the senior secured credit facilities of Compagnie Générale de Géophysique-Veritas (CGGVeritas), comprising a $200 million senior secured revolving credit facility due 2012 at CGGVeritas and a $1.0 billion senior secured term loan B due 2014 and a $140 million senior secured revolving credit facility due 2012 at CGGVeritas Services Inc.

At the same time, Moody's said it affirmed the group's Ba2 corporate family rating and the Ba3 ratings on the $530 million of 7.5% and $400 million of 7.75% senior unsecured notes due 2015 and 2017, respectively.

The outlook is stable.

The upgrade reflects the combination of (i) the early repayment of $100 million under the term loan B in June 2007 and (ii) Moody's anticipation that CGGVeritas will further reduce the amount outstanding under its senior facilities in the short- to medium term on the back of strong cash flow generation, thereby raising their recovery prospects relative to other classes of debt, including the notes.

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