Fitch rates Nabors notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Nabors Industries, Inc.'s proposed issuance of $500 million of 10-year notes.

Fitch expects the notes will be used primarily to refinance existing revolver debt balances and for general corporate purposes.

Fitch also affirmed the company's issuer default rating and senior ratings at BBB+. The outlook is negative.

The negative outlook reflects the company's still-weak credit metrics for the BBB+ rating category, the negative free cash flow Fitch anticipates the company will see in 2011 due to its large capex program and uncertainty regarding the timing of any incremental asset sales above and beyond levels completed earlier this year, the agency said.

At June 30, Nabors' debt-to-EBITDA leverage ratio was 2.64 times.

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