S&P affirms Frac Tech

Standard & Poor's said it affirmed the B+ issue-level rating on Frac Tech International LLC's $1.5 billion term loan due 2016 and revised the recovery rating on the term loan to 3 from 4. The 3 recovery rating indicates the expectation of a meaningful (50% to 70%) recovery in the event of default.

S&P also affirmed the BB issue-level rating and 1 recovery rating on Frac Tech's remaining $230 million of 7 1/8% senior unsecured notes due 2018.

The outlook is negative.

The ratings on Frac Tech reflect the company's weak business risk profile and aggressive financial risk profile, the agency said. The company's business risk profile hinges on its position as a fracturing service provider subject to the high degree of demand and price volatility inherent in the market for fracturing services.

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