S&P: Halliburton unchanged

Standard & Poor's said that Halliburton Co.'s (BBB+/stable/A-2) announcement that its first-quarter 2007 earnings will be below expectations will not affect ratings.

Management pointed to decreased drilling activity in certain areas of North America as the primary reason for the shortfall, the agency added.

It also noted that there may be additional difficulties related to unit KBR's 50% owned gas-to-liquids project in Escravos, Nigeria, S&P said.

Despite the shortfall, Halliburton's credit measures are solid for the current ratings and management's steps toward completing the separation from KBR should improve credit quality in the near to intermediate term, the agency added.

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