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S&P downgrades Halliburton
S&P said it lowered the corporate credit and senior unsecured debt ratings on Halliburton Co. to A- from A and placed them on CreditWatch with negative implications.
The agency also said it lowered the short-term and commercial-paper ratings to A-2 from A-1.
The downgrades follow news that Halliburton and Baker Hughes have terminated their merger agreement, S&P said.
As a result, Halliburton will pay Baker Hughes a $3.5 billion termination fee, the agency said.
The downgrades reflect the removal of a positive comparative rating analysis, which had reflected the benefits to Halliburton's overall credit quality from the combination with Baker Hughes, S&P said.
The ratings also reflect the company's strong business risk profile, intermediate financial risk profile and strong liquidity, the agency said.
The negative watch considers the company's high debt levels and potential for weakening financial measures, S&P said.
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