Fitch raises Halliburton credit ratings |
|
|
|
Published
:
Fri, 31 Aug 2007 22:06
|
NEW YORK (AP) - Fitch Ratings on Friday raised its credit ratings on Halliburton Co. and revised its outlook on the oil services company to stable, citing the positive impact from shedding its KBR Inc. subsidiary.Fitch upgraded Halliburton's issuer default rating to 'A-' from 'BBB+,' its senior unsecured ratings to 'A-' from 'BBB+' and confirmed its commercial paper rating at 'F2.' All are investment-grade ratings.The rating upgrades reflect the positive impact on Halliburton from the divestiture of its KBR subsidiary in April, Fitch said. The separation with KBR, Halliburton's former engineering, construction and government-services arm, began in 2005. KBR was claimed to have benefited from ties to Vice President Dick Cheney, who once led Halliburton.The upgrade also reflects Halliburton's sustained improvements in its credit profile, Fitch said.Fitch warned that further improvements to the company's credit profile could be mitigated by weakness in the natural gas market and a potential reduction in drilling activity.The stable outlook reflects the expectations that Halliburton will be successful in diversifying the company both geographically and operationally, Fitch said.'Halliburton's ratings continue to reflect its leading position in the energy services sector, the company's existing geographic and operational diversification and the robust credit profile and liquidity of the company,' Fitch said.Halliburton shares rose 47 cents to $34.59.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
Print this Story
Halliburton upgraded to 'A'; removed from creditwatch - S&P 