S&P revises ION view to negative

S&P said it revised the outlook for ION Geophysical Corp. to negative from stable and affirmed the company’s CCC+ rating as well as the B- rating on its second-lien notes with a 2 recovery rating.

“Our outlook revision to negative reflects the company's need to refinance its second-lien notes due in December 2021 as capital markets for oil and gas service companies remain challenging. Additionally, we do not expect the company to generate sufficient discretionary cash flow or have enough availability on its credit facility to address the entire maturity. Therefore, in our opinion, there is greater risk of the company executing a transaction we could view as distressed,” said S&P in a press release.

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