Healthy near- to medium-term fundamentals for the offshore supply vessel (OSV) markets; A young, technologically advanced OSV fleet; and Growing market, geographic, and business diversity. The expectation of continued aggressive expansion of the company's OSV and multipurpose service vessel fleets, which could lead to higher debt levels and weaker liquidity than currently expected; 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 A 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 OSV industry,
