Above-average characteristics of Hornbeck's U.S. Gulf of Mexico deepwater market; A young, technologically advanced offshore supply vessel (OSV) fleet; and Growing market, geographic, and business diversity. Limited, but improving, market diversity; Very cyclical pricing and utilization; and Weak market conditions for the marine transportation business. The ratings on Covington, La.-based Hornbeck Offshore Services Inc. reflect the risks posed by the company's niche position in the highly volatile offshore supply vessel (OSV) industry, aggressive growth strategy, and elevated debt leverage. The company's young, technically advanced OSV fleet, growing geographic and business diversification, and historically better-than-average performance of its deepwater market buffer the above risks. We expect Hornbeck to benefit from its fleet expansion, as well as the historically less-volatile nature of
