Moody's: Smith International outlook stable

Moody's Investors Service said it affirmed Smith International Inc.'s Baa1 senior unsecured rating and changed the outlook to stable from positive.

The outlook change primarily reflects the much weaker demand environment for oilfield services and the agency's expectation for that to continue well into 2010, Moody's said. While the agency expects that Smith's 2009 earnings decline will not be as pronounced as other oilfield services companies, it doesn't believe that sector conditions will be supportive of an upgrade in the near term.

Smith's Baa1 rating is supported by its well diversified mix of products and services, strong market positions and broad geographic diversification, Moody's said.

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