Fitch changes Halliburton to negative

Fitch Ratings said it affirmed Halliburton Co.’s long-term issuer default rating at A-.

The outlook was revised to negative from stable.

Fitch said the negative outlook reflects the uncertain outcome of the Department of Justice's (DOJ) lawsuit to block Halliburton's pending acquisition of Baker Hughes due to competitive concerns and potential impacts on the company's forecasted leverage profile.

In a breakup scenario, Halliburton would have to pay a $3.5 billion fee to Baker Hughes.

Halliburton issued $7.5 billion of debt in November 2015 to help fund the $8.3 billion cash portion of the pending transaction. The issuance also contemplated the potential breakup funding need and includes a special mandatory redemption clause that requires Halliburton to redeem the total $2.5 billion in senior notes due in 2020 and 2022.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.