S&P: Halliburton concerns continue

Standard & Poor's said Friday that Halliburton Co. (BBB/Watch developing/A-3) made an announcement that the Army Material Command has agreed to a 30-day extension until April 30, 2004 to begin implementation of the Federal Acquisition Regulation clause that would impose a 15% withholding action in Halliburton's billings to the government, with an additional 30-day option, if needed.

Despite the extension until possibly June 1, 2004, S&P said it remains concerned about lagging accounts receivables collection, and considerable working capital needs associated with Halliburton's government service business in Iraq.

S&P will closely monitor the timeliness of Halliburton's cash receipts from the Iraqi-related government contracts. Ratings could be negatively affected if the timeliness and amounts of those receipts deviate from expected levels.

© 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.