We expect U.S.-based offshore service provider Hornbeck Offshore Services Inc. to see much weaker day-rates and utilization of its vessels, resulting in weaker operating performance and credit measures. We are lowering the corporate credit rating on the company to 'B+' from 'BB-'. The stable outlook reflects our expectation that Hornbeck will maintain funds from operations (FFO) to debt of 12% to 15% throughout the challenging offshore market downturn. We affirmed our 'BB-' issue-level rating on the company's senior unsecured debt at and revised the recovery rating to '2' from '3'. On July 2, 2015, Standard&Poor's Ratings Services lowered its issuer credit rating on Hornbeck Offshore Services Inc. to 'B+' from 'BB-'. The outlook is stable. At the same
