Post by Logan on Jun 5, 2016 23:27:06 GMT -6
Moody’s credit rating agency on Friday downgraded both Halliburton and Baker Hughes after their failed merger during the ongoing oil bust.
Moody’s cut the credit rating by two notches of the two, Houston-based oil field services giants — the world’s second and third-largest services companies after Schlumberger. Their ratings were dropped from a strong A2 down to Baa1, which reflects moderate credit risks and an uncertain business environment.
“Debt incurred to finance its failed bid to acquire Baker Hughes … together with the negative impact on profitability and cash flow of the very weak oilfield services environment have eroded (Halliburton’s) credit metrics to levels which no longer support its A2 rating,” said Moody’s Vice President Andrew Brooks in the announcement.
Halliburton in early May ended its planned acquisition of Baker Hughes that was once valued at $35 billion after an 18-month engagement. The deal fell apart after the Justice Department intervened because of concerns about reduced competition in the oil services sector.
Read more: fuelfix.com/blog/2016/06/03/moodys-downgrades-halliburton-and-baker-hughes/
Moody’s cut the credit rating by two notches of the two, Houston-based oil field services giants — the world’s second and third-largest services companies after Schlumberger. Their ratings were dropped from a strong A2 down to Baa1, which reflects moderate credit risks and an uncertain business environment.
“Debt incurred to finance its failed bid to acquire Baker Hughes … together with the negative impact on profitability and cash flow of the very weak oilfield services environment have eroded (Halliburton’s) credit metrics to levels which no longer support its A2 rating,” said Moody’s Vice President Andrew Brooks in the announcement.
Halliburton in early May ended its planned acquisition of Baker Hughes that was once valued at $35 billion after an 18-month engagement. The deal fell apart after the Justice Department intervened because of concerns about reduced competition in the oil services sector.
Read more: fuelfix.com/blog/2016/06/03/moodys-downgrades-halliburton-and-baker-hughes/