TEXT - S&P rates National Oilwell Varco
Nov 15 - Standard & Poor's Ratings Services today assigned its 'A-' senior unsecured debt rating to National Oilwell Varco Inc.'s announced $3.0 billion senior unsecured note offering. The offering will comprise three maturities of five-, 10-, and 30-years; however, the amounts allocated to each maturity have not been determined at this time. The notes are not guaranteed by the subsidiaries of National Oilwell Varco and will be structurally subordinated to all existing and future debts and other liabilities of those subsidiaries. We expect proceeds to be used to fund the $2.5 billion acquisition of Robbins & Myers, Inc., as well as for general corporate purposes. The ratings on Houston-based National Oilwell Varco Inc. (NOV) reflect our view of the company's "strong" business profile and "modest" financial profile under our criteria. NOV has a solid business franchise as an equipment provider to the oil and gas industry and leading market positions in multiple products and services. Good operating performance, the ability to generate operating cash flow well in excess of ongoing capital spending requirements, and a moderate financial policy also support the rating. The company competes with certain other large, financially strong oilfield service companies that offer a wide range of products and services. We expect NOV's competitive position to continue to enable it to successfully compete with these peers. RELATED RESEARCH AND CRITERIA -- Corporate Ratings Criteria 2008, published April 15, 2008. -- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012 -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 Temporary telephone contact numbers: Paul Harvey (914-539-1288); Susan Ding RATINGS LIST National Oilwell Varco Inc. Corporate credit rating A/Stable/-- New Rating $3 bil. senior unsecured notes Five-year notes A- 10-year notes A- 30-year notes A-
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