S&P raises Petroleum Geo-Services

Standard & Poor's said it raised its corporate credit rating on Petroleum Geo-Services ASA to BB- from B+ and removed the rating from CreditWatch with developing implications.

The outlook is stable.

S&P said that the upgrade reflects the company's meaningful debt reduction that has occurred as a result of the company's completed demerger of its floating production storage and offloading business, Petrojarl ASA.

The ratings on Petroleum Geo-Services reflect participation in the intensely competitive and highly cyclical seismic subsector of the oilfield services industry, the agency noted, adding that concerns are partially tempered by a strong market position in marine seismic operations, a sizeable and technically sophisticated fleet of 3D marine acquisition vessels and an improving financial risk profile.

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