S&P: Halliburton developing

Standard & Poor's said Halliburton Co.'s (BBB/Watch developing/A-3) announcement that it is taking pre-tax charges of about $310 million on its Barracuda-Caratinga project is an unfavorable development for its ratings on the company, but the announcement that it will take about $680 million for reducing its asbestos insurance asset as a result of various settlement agreements has already been factored into the ratings.

Halliburton's ratings remain on CreditWatch with developing implications.

S&P said although the charge is considerable, the company has adequate liquidity to satisfy this obligation and fund its asbestos trust obligations later this year.

Nevertheless, this announcement, along with the recently announced formal Securities and Exchange Commission investigation into payments made in connection with a Nigerian joint venture, will be factors that weigh negatively in S&P's resolution of the CreditWatch, which will occur when a final nonappealable settlement to the asbestos litigation process is reached.

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