S&P: Schlumberger notes AA-

Standard & Poor’s said it affirmed the AA- corporate credit ratings and A-1+ short-term ratings on Schlumberger Ltd. and Schlumberger Holdings Corp.

The outlook is stable.

S&P also said it assigned an AA- senior unsecured issue-level rating to Schlumberger Holdings’ proposed notes issuance.

The ratings reflect an expectation that Schlumberger’s credit-protection measures will remain consistent with the rating over the next three years despite an increase in debt related to the Cameron acquisition and challenging industry conditions, the agency said.

Schlumberger Holdings will purchase about $11 billion of common shares from parent Schlumberger for stock consideration to Cameron shareholders, in addition to $2.8 billion in cash, S&P said.

Schlumberger Holdings also will assume about $2.9 billion of Cameron debt, the agency said.

The company is expected to issue new long-term debt, $2 billion of commercial paper, $2 billion in intercompany loans to its parent and fund the remainder of the purchase price with cash on hand, S&P said.

The acquisition will improve the company’s business risk by broadening its scale and product diversification, the agency said, and strengthening its market position.

The company has demonstrated resilience during the current severe industry downturn, S&P said.

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