McDermott Announces Upgrades by Credit Rating Agencies
03 July 2007 - 6:18AM
Business Wire
McDermott International, Inc. (NYSE:MDR) (�McDermott� or the
�Company�) announced today that both of the major corporate credit
rating services, Standard & Poor�s Ratings Services (�S&P�)
and Moody�s Investors Service (�Moody�s�), have recently upgraded
their respective ratings of McDermott and its rated subsidiaries.
Included among the recent ratings activity, McDermott�s corporate
credit rating at S&P was raised to BB from B+, with a stable
outlook, and the Company�s corporate family rating at Moody�s was
raised to Ba3 from B1, also with a stable outlook. �McDermott is
pleased to have the major rating services publicly recognize the
continued improvement in our operations and financial profile,�
said Michael S. Taff, Senior Vice President and Chief Financial
Officer. �Although the Company remains virtually debt free and in a
strong net cash position, higher ratings will lower the current
costs of our letters-of-credit and improve McDermott�s overall
financial flexibility.� As a result of recent improved operating
performance, stronger liquidity and now higher credit ratings,
McDermott has initiated negotiations with the respective agents and
lenders on two of its subsidiaries� credit agreements to amend the
facilities to reduce fees and expenses, in addition to other
modifications. McDermott is an engineering and construction
company, with specialty manufacturing and service capabilities,
focused on energy infrastructure. McDermott�s customers are
predominantly utilities and other power generators, major and
national oil companies, and the United States Government. With its
global operations, McDermott operates in over 20 countries with
more than 20,000 employees, and can be found on the internet at
www.mcdermott.com. In accordance with the Safe Harbor provisions of
the Private Securities Litigation Reform Act of 1995, statements in
this press release which are forward-looking and provide other than
historical information involve risks and uncertainties that may
adversely impact the expectations expressed in these
forward-looking statements. The forward-looking statements in this
press release include statements regarding the lower costs
associated with letters-of-credit and improvement in our financial
flexibility as a result of our improved ratings. Those statements
are made based on various underlying assumptions and are subject to
numerous uncertainties and risks, including without limitation,
adverse changes in the financial markets. If this or other risks
materialize, or if underlying assumptions prove incorrect, actual
results may vary materially from those expected. For a more
complete discussion of these and other risk factors, please see
McDermott's annual report for the year ended December 31, 2006
filed with the Securities and Exchange Commission.
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