S&P: Grant Prideco unchanged

Standard & Poor's said that ratings on Grant Prideco Inc. (BB+/stable) would not be affected by the announcement that it had entered into a definitive agreement with Vallourec SA (unrated) to sell three of the four business units making up Grant Prideco's tubular technology and services segment: Atlas Bradford Premium Threading & Services, TCA and Tube Alloy.

The agency said that Grant Prideco will receive cash proceeds of $800 million in a transaction expected to close in late 2007 or early 2008.

Despite the loss of some operating income from these units, representing roughly $40.4 million of the tubular technologies segment operating income year-to-date, S&P said it expects Grant Prideco's credit profile to continue to benefit from the strong cash flow of its remaining business lines, favorable credit measures, improved near-term liquidity and low debt leverage.

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