S&P has raised KLX Energy Services' rating to 'CCC+'.

S&P Global Ratings has upgraded the credit rating of KLX Energy Services Holdings Inc., a Houston-based oilfield services company, from 'CCC' to 'CCC+'. The outlook has also shifted from 'negative' to 'stable', reflecting the company's recent actions to manage its debts. KLX has completed a $232 million senior secured, variable-rate payment-in-kind (PIK) bond issuance and secured a new asset-based lending facility to refinance upcoming debt maturities at par value.

With these transactions, KLX will not have any significant debt maturities until March 2028. The company successfully refinanced its bond debt maturing in November 2025, facilitating the transition of existing bondholders into new bonds at par value. The remaining proceeds, along with cash on hand, are earmarked for the full repayment of existing bonds at par value by March 30, 2025. The stable outlook reflects expectations of stable credit metrics, including a debt-to-funds-from-operations ratio of approximately 20% in 2025 and 2026, while KLX is also expected to generate nearly zero free cash flow in 2025. Following these developments, S&P Global Ratings withdrew all ratings related to KLX, including the 'CCC+' issuer credit rating, at the company's request on March 21, 2025.