S&P affirms Baker Hughes, puts BJ on positive watch

Standard & Poor's said that it affirmed Baker Hughes Inc.'s ratings, including its A corporate credit rating, following the announcement that the company will be acquiring BJ Services Co.

The outlook is stable.

"The ratings affirmation on Baker Hughes reflects our view of the favorable long-term attributes of the acquisition of BJ Services," said S&P credit analyst Jeff Morrison.

"In addition, despite a weaker near-term sector outlook, we currently expect Baker Hughes' credit ratios and liquidity profile to remain in line with our expectations for the current A ratings given the acquisition's conservative financing structure."

S&P said it also placed its ratings on BJ Services, including the company's BBB+ corporate credit rating, on CreditWatch with positive implications.

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