Moody's drops Weatherford

Moody's Investors Service said it downgraded Weatherford International Ltd.'s senior unsecured rating to Baa3 from Baa2 and its commercial paper rating to Prime-3 from Prime-2.

The outlook was changed to stable from negative.

Moody's said the action primarily reflects Weatherford's high financial leverage profile.

"The downgrade of Weatherford's ratings to Baa3 reflects the company's consistently high financial leverage, with particularly weak cash flow levels relative to debt," Moody's vice president Gretchen French said in a news release. "While Weatherford remains highly focused on lowering its financial leverage, the pace and degree of an improved leverage profile faces high execution risk - challenges that are better accommodated within the lower Baa3 rating."

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