DBRS upgrades Source Energy

DBRS said it upgraded Source Energy Services Canada LP and Source Energy Services Canada Holdings Ltd.’s issuer rating to CCC with a stable trend from selective default.

The upgrade follows the recapitalization transaction by the co-issuers’ ultimate holding company, Source Energy Services Ltd. DBRS also assigned an RR4 recovery rating and a CCC rating with a stable trend to the co-issuers’ new senior secured first-lien notes.

“The rating actions and stable trends reflect DBRS Morningstar’s opinion that the recap has improved Source’s near-term liquidity position and provides the company with the financial flexibility to wait for an expected improvement in the level of drilling activity in the Western Canadian Sedimentary Basin (WCSB) in 2022,” DBRS said in a press release.

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