Standard&Poor's Ratings Services' ratings on Covington, La.-based Hornbeck Offshore Services Inc. reflect the near-term uncertainty of financial measures do to the continuing permitting delays in the U.S. Gulf of Mexico. As a result, financial performance is expected to be weaker than previous expectations, with heightened uncertainty until drilling activity returns to the deep water sector. The deep water U.S. Gulf of Mexico region has remained effectively closed to drilling, despite the end of the drilling moratorium. Given Hornbeck's large exposure to that market, about 60% of the company's upstream fleet, the company's financial measures will suffer until drilling permit approvals resume, or Hornbeck can relocate its vessels to other markets. Additionally, the increased supply of available vessels due
