Fundamentals for the tank barge and offshore supply vessel (OSV) markets remain healthy over the near to medium term; Young, technologically advanced OSV fleet; and Recent debt and equity issuances provide liquidity for new vessel construction. The company will continue to aggressively expand its barge and OSV fleets, which could lead to higher debt levels if cash flow weakens; The OSV and tank barge businesses are subject to very cyclical pricing; Better-capitalized competitors may enter the deepwater market through new-vessel construction and create an oversupply of vessels, sinking day rates, and utilization; and A lack of longer-term contracts for the OSV and barge fleets could raise the volatility of earnings and cash flows. The ratings on Hornbeck Offshore Services Inc.
