Moody's assigns Baa2 to Weatherford notes

Moody's Investors Service said it assigned a Baa2 rating to Weatherford International Ltd.'s proposed senior unsecured notes due 2022 and 2042.

The notes will benefit from guarantees from Weatherford International Ltd. (incorporated in Switzerland) and Weatherford International, Inc. (incorporated in Delaware) and rank pari passu with the company's existing notes.

"While the refinancing will improve Weatherford's liquidity profile during a continued capital intensive growth period in 2012, given the company's high and rising debt levels, the Baa2 rating has very little cushion to withstand a slowdown in oilfield service activity levels, a setback in project execution or a material contingent liability," commented Gretchen French, Moody's vice president, in a news release.

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