S&P: BJ Services unaffected

Standard & Poor's said Thursday that its ratings on BJ Services Co. (BBB+/stable/--) will not be affected by the company's announcement that it settled with the Securities and Exchange Commission regarding allegations of improper payments made by employees of BJ Services' Argentine subsidiary.

The settlement imposes no fine or penalty on BJ Services, which is supportive of credit quality. However, the fact that illegal, questionable, and undocumented payments may have been made to local officials demonstrates the inherent risk associated with operating in countries with elevated political risk.

Although BJ Services continues to operate this subsidiary, company risk is limited because business in Argentina comprises only a small portion of consolidated revenues and cash flow.

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