S&P affirms Weatherford, ups outlook to stable

Standard & Poor's said it affirmed its BBB+ corporate credit rating on Weatherford International Ltd. and revised the company's outlook to stable from negative.

At the same time, the agency said it assigned its BBB+ senior unsecured rating to the new $1.5 billion senior notes, including $600 million of 5.95% senior notes due June 15, 2012, $600 million of 6.35% senior notes due June 15, 2017 and $300 million of 6.8% senior notes due June 15, 2037 issued by Weatherford subsidiary Weatherford International Inc.

Weatherford will use proceeds from the offering to refinance outstanding CP and for general corporate purposes, S&P noted, adding that the outlook revision is predicated on improvement in Weatherford's cash flow generation, operating performance and business risk profile following the company's 2005 acquisition of energy services and international contract drilling business units from Precision Drilling Corp.

According to the agency, the ratings on Weatherford reflect an improving competitive position, a broadening oilfield product and services offering, strengthening geographic diversification and an intermediate financial risk profile.

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