S&P Global Ratings on March 26 downgraded Halliburton Co.'s long-term credit rating and issue-level ratings on the company's unsecured debt to BBB+ from A-. The outlook remains negative.

However, the rating agency maintained the oilfield services provider's short-term issuer credit rating and commercial paper rating at A-2.

Ratings expect the oilfield services industry to experience material weakness due to oil and gas exploration and production companies announcing capital spending cuts owing to sharply lower oil and natural gas prices. In addition, the rating agency forecast that Halliburton's credit measures will be weaker than its expectation for the A- rating through 2021.

The negative outlook reflects the "effects that low oil prices and demand for oilfield services, particularly in the U.S., will have on Halliburton's earnings and cash flow in 2020."

Ratings previously lowered its West Texas Intermediate and Brent oil price assumptions and also took rating actions on 10 European oil and gas companies. More recently, fellow oilfield services provider Patterson-UTI Energy Inc. lost its investment-grade status with the rating agency.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.