Moody’s drops Weatherford, debt

Moody's Investors Service said it downgraded Weatherford International Ltd.'s corporate family rating to B3 from B1 and probability of default rating to B3-PD from B1-PD.

The agency also downgraded both Weatherford Bermuda's and Weatherford International, LLC's (Weatherford Delaware) senior unsecured ratings to Caa1 from B2.

The speculative grade liquidity rating of SGL-3 was affirmed.

The outlook remains negative.

"The downgrade of Weatherford's CFR reflects its very weak cash flow from operations, which is untenable relative to the company's debt balances and is not commensurate with peers at the prior B1 CFR level," Moody's vice president Gretchen French said in a news release.

"While Weatherford should experience modest improvement in cash flows in 2017, Moody's does not expect the increase to be sufficient to indicate a more sustainable capital structure."

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