S&P rates National Oilwell Varco notes A-

Standard & Poor's said it assigned an A- senior unsecured debt rating to National Oilwell Varco Inc.'s announced $3 billion senior unsecured note offering.

The offering will comprise three maturities of five-, 10- and 30-years. 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.

The proceeds will be used to fund the $2.5 billion acquisition of Robbins & Myers, Inc., as well as for general corporate purposes.

The ratings reflect the company's strong business profile and modest financial profile, S&P said.

The company has a solid business franchise as an equipment provider to the oil and gas industry, the agency said, 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, S&P said.

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