Moody's reviews Nabors

Moody's Investors Service said it placed Nabors Industries Ltd.'s A3 senior unsecured ratings under review for downgrade.

The action follows the company's $750 million senior unsecured notes offering with proceeds to be used to for general corporate purposes including potential increases in capital expenditures.

"This additional bond offering will further increase Nabors' leverage levels, which were already high for its A3 rating," Pete Speer, Moody's vice president, said in a written statement.

"Despite strengthening North American drilling activity and expectations of escalating demand, Moody's is concerned with Nabors' increasing financial risk and the uncertainty regarding the ultimate use of proceeds from the offering," Speer said.

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