S&P gives Nabors Industries notes A-

Standard & Poor's said it assigned its A- rating to Nabors Industries Inc.'s $2.5 billion exchangeable notes due 2011 and placed the rating on CreditWatch with negative implications.

All the ratings on Nabors remain on CreditWatch with negative implications where they were placed on May 18, the agency said.

The CreditWatch placement with negative implications incorporates Nabors' significantly increased leverage, S&P said.

Moreover, S&P said it has heightened concern regarding Nabors' increased reliance on current favorable market conditions to continue through 2007 in order to meet its sizable capital expenditure needs and planned share repurchases, while also reducing its higher leverage to levels that are more in line with its A- rating.

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