TEXT-S&P release on National Oilwell Varco Inc

(The following statement was released by the ratings agency)

Sept 18 - Standard & Poor's Ratings Services said today that it revised its outlook on Houston, Texas-based capital equipment provider National Oilwell Varco Inc. (NOV.N) (NOV) to positive from stable. At the same time, we affirmed all the ratings, including the 'BBB+' corporate credit rating, on the company. As of June 30, 2007, NOV had about $1 billion in debt, adjusted for operating leases and postretirement obligations.

"The outlook revision reflects the improvement in NOV's business profile and geographic diversity," said Standard & Poor's credit analyst Aniki Saha-Yannopoulos. "We also expect that a healthy balance sheet and robust market conditions should provide the flexibility the company needs to continue improving its business and operational diversity while maintaining a conservative financial profile."

The ratings on NOV reflect the company's satisfactory business profile, based on a solid business position as an equipment provider to the oil and gas industry and on its leading market positions. Good operating performance, favorable business conditions, the ability to generate cash through working capital and capital expenditure reductions during industry troughs, and a moderate financial policy with currently modest debt leverage provide ratings support. However, ratings also reflect the very cyclical oilfield services industry and the company's acquisitive growth strategy.