On November 5, 2020, S&P Global Ratings lowered its issuer credit rating on Nine Energy Service, Inc. to SD from CCC+ and its unsecured notes due 2023 rating to D from CCC+. The downgrade reflects the Company's recent open market debt repurchases, under which it repurchased a total of more than $50 million of its unsecured notes principal year-to-date at less than 30 cents on the dollar. Consequently, the ratings agency views these repurchases as a selective default because investors received less than they were originally promised under the notes without receiving adequate compensation. S&P Global still views Nine Energy's capital structure as unsustainable amid the current industry environment and expects its business to remain very challenging for the balance of this year and into 2021 due to the subdued level of drilling and completion activity.

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