Duff and Phelps said it changed theratings on outstanding senior debt of Baker International Corp
and Hughes Tool Company.
    The change affects 515 mln dlrs in debt and assumes a
merger of the two companies will be completed.
    Baker's senior debt was downgraded to DP-8 (high BBB) from
DP-7 (low A).
    Hughes senior debt was raised to DP-8 from DP-12 (middle
BB) while subordinated debt was raised to DP-9 (middle BBB)
from DP-14 (high B).
    The debt ratio of the combined compaies will be about 40
pct but available cash plus proceeds from the sale of assets
will permit a prompt reduction in debt, Duff and Phelps said.
    However, fixed charge coverages will remain very thin until
the company's markets improve, D and P said.
 Reuter
