Fitch rates Weatherford B+

Fitch Ratings said it assigned a B+ issuer default rating to Weatherford International plc and to Weatherford International Ltd. (Bermuda). Fitch also assigned BB+/RR1 ratings to Weatherford International Ltd. (Bermuda)'s senior secured debt and BB-/RR3 ratings to its senior unsecured notes. The outlook is stable.

“The rating is driven by Weatherford's significant diversification, size and scale, which differentiates the company relative to other oilfield services (OFS) issuers rated in the B range. An improving through-the-cycle margin profile and debt-focused capital allocation further bolster the rating. We expect FCF generated through the forecast period to be targeted at secured debt reduction.

“Key restraints on the credit profile include the company's restrictive capital structure, significant gross debt pile and the volatile nature of the oilfield services industry,” Fitch said in a press release.

The outlook reflects an expectation for more gross debt reduction and a simplified capital structure relative to normalizing OFS industry conditions through the forecast period, the agency said.

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