S&P: Halliburton unaffected

Standard & Poor's said the Defense Contract Audit Agency's conclusion that Halliburton Co. (BBB/Watch developing/A-3) failed to adequately account for more than $1.8 billion of work in Iraq and Kuwait is an unfavorable development for the company's credit quality but has no immediate affect on the ratings.

This is an ongoing issue for which Halliburton had previously received an extension, which expires on Aug. 15, from the U.S. Department of Defense, according to S&P.

S&P said it has been closely monitoring the timeliness of Halliburton's cash receipts from the Iraq-related government contracts. A negative rating action could occur if the timeliness and amounts of those receipts deviate from expected levels, S&P said.

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