Moody's cuts Weatherford view

Moody's Investors Service said it changed Weatherford International Ltd.'s outlook to negative from stable. At the same time, Moody's said it affirmed Weatherford's Baa2 senior unsecured and prime-2 commercial paper ratings.

The agency said the rating action follows Weatherford's announcement that it will need to restate its previously filed form 10-K for the year-end 2011 and its previously filed form 10-Q for the quarter ending March 31 as a result of issues related to income tax accounting. The company will also be delayed in filing its form 10-Q for the quarter ending June 30.

"The negative outlook reflects Weatherford's need to again restate its financial statements, representing the third restatement within the past 18 months," said Gretchen French, a Moody's vice president, in a news release.

"Weatherford could face a prolonged period in remediating its material weakness in internal control over financial reporting for income taxes, which would create significant management distractions during a period of capital intensive growth with high and rising debt levels, lagging returns and high levels of working capital relative to peers."

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