S&P reviews Halliburton, Baker Hughes

Standard & Poor's said it placed all its ratings of Halliburton Co. and Baker Hughes Inc. on CreditWatch with negative implications.

This includes Halliburton’s A long-term and A-1 short-term corporate credit ratings, the A issue-level rating on its senior unsecured debt and the A-1 commercial paper rating.

It also includes Baker Hughes’ A long-term and A-1 short-term corporate credit ratings, A issue-level rating on the senior unsecured debt and the A-1 commercial paper rating.

Halliburton and Baker Hughes announced a definitive agreement on Nov. 18 under which Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction. Based on Halliburton's closing price on Nov. 12, the value of the transaction is about $38 billion, including about $3.4 billion of net debt assumption.

S&P said completion of the transaction could boost the competitive position of the combined companies, given the complementary nature of some of their products and services – particularly in the key unconventional, deepwater and mature fields businesses.

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