Moody's trims Schlumberger

Moody's Investors Service said it downgraded Schlumberger Ltd.'s rating and the senior unsecured ratings of its guaranteed subsidiaries to A2 from A1 and changed the outlook to negative.

Moody's also affirmed Schlumberger Holding Corp.'s Baa1 issuer and senior unsecured ratings. The company's outlook remains negative.

These actions conclude the review for downgrade started on April 1, the agency said.

"Schlumberger's financial leverage metrics were already high for its ratings entering this severe downturn in demand for its products and services," said Pete Speer, a Moody's senior vice president, in a press release.

"By deeply cutting its dividend and capital investment the company should be able to generate free cash flow and reduce debt as the industry recovers, leading to credit metrics that support an A2 rating," Speer said.

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