Moody’s Upgrade For Nabors Industries
Nabors Industries Inc., a wholly owned subsidiary of Bermuda-based Nabors Industries Ltd., received an improved rating outlook from Moody’s Investor Services yesterday [Mar. 19], moving from a negative rating to a stable Baa2 senior unsecured rating.
Some of the land drilling contractor’s credit strengths include its significant international operations and its large asset scale, Moody’s said yesterday statement.
However, the company also has high debt levels and significant earnings volatility.
The company recently sold some assets and experienced a change in senior leadership after CEO Gene Isenberg left the company last October.
“The change to a stable outlook reflects Nabors’ improving leverage metrics and renewed emphasis on capital discipline,” Moody’s vice president Pete Speer said in a statement. “The company’s stated focus on free cash flow generation, rationalising its business lines and debt reduction support its Baa2 rating.”
Though headquartered in Bermuda, the company has major operations in Houston.
