Baker’s debt rating went down, Hughes’ went up.

The actions by Moody’s Investors Service affect about $622 million in debt at the two big oil service firms, which plan to merge. The senior debt rating of Baker International was lowered to BAA1 from A2, while the rating of Hughes Tool was nudged up to the same BAA1 level from the previous B3. Moody’s said the merger of the two firms into Baker Hughes Inc. will increase financial leverage while demand for its services is weak. But the agency said cost reductions and consolidations resulting from the merger will “substantially strengthen” its competitive position.