Moody's ups Halliburton view to positive

Moody's Investors Service said it affirmed the Baa2 senior unsecured ratings of Halliburton Co. and revised the outlook to positive from stable.

The rating actions were in response to Halliburton's announcement that the bankruptcy court has confirmed Halliburton's asbestos settlement plan through a permanent injunction. The settlement will discharge the company and its subsidiaries from their existing and future asbestos and silica claims.

Moody's said the rating affirmation and positive outlook reflect the significant benefits to Halliburton of capping its asbestos exposure, as well as the company's near-term opportunities to reduce its debt obligations with free cash flow and asbestos-related insurance proceeds in order to improve its financial leverage, which has become more elevated as a result of debt incurred to pre-fund the cash portion of the asbestos settlement.

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