Healthy near- to medium-term fundamentals for the tank barge and offshore supply vessel (OSV) markets; Young, technologically advanced OSV fleet; and Market and business diversity of the tank barge business. Expectation of continued aggressive expansion of the company's barge and OSV fleets, which could lead to higher debt levels if cash flow weakens; Very cyclical pricing; Vulnerability to better capitalized competitors entering the deepwater market through new-vessel construction, creating an oversupply of vessels, sinking dayrates, and slack utilization; and Lack of longer term contracts for the OSV and barge fleets, possibly raising the volatility of earnings and cash flows. The ratings on Hornbeck Offshore Services Inc. reflect the risks posed by the company's niche position in the highly volatile offshore
