S&P: ION Geophysical outlook negative

Standard & Poor's said it revised the outlook on ION Geophysical Corp. to negative from stable and affirmed the company's BB- corporate credit rating.

The agency said the negative outlook reflects its expectations that ION will continue to face a weakening seismic market given the decline in commodity prices and as exploration and production companies cut back on their capital budget.

The rating on ION reflects a vulnerable business risk profile, which is based on its exposure to volatile and cyclical seismic data acquisition end markets and its small scale compared with direct competitors, limited liquidity and its bank facilities' stringent covenant package, S&P said.

These weaknesses are somewhat offset by low debt leverage and limited capital requirements, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.