MDR McDermott International Inc

McDermott International, Inc. (NYSE:MDR) (�McDermott� or the �Company�) announced today that both of the major corporate credit rating services, Standard & Poor�s Ratings Services (�S&P�) and Moody�s Investors Service (�Moody�s�), have recently upgraded their respective ratings of McDermott and its rated subsidiaries. Included among the recent ratings activity, McDermott�s corporate credit rating at S&P was raised to BB from B+, with a stable outlook, and the Company�s corporate family rating at Moody�s was raised to Ba3 from B1, also with a stable outlook. �McDermott is pleased to have the major rating services publicly recognize the continued improvement in our operations and financial profile,� said Michael S. Taff, Senior Vice President and Chief Financial Officer. �Although the Company remains virtually debt free and in a strong net cash position, higher ratings will lower the current costs of our letters-of-credit and improve McDermott�s overall financial flexibility.� As a result of recent improved operating performance, stronger liquidity and now higher credit ratings, McDermott has initiated negotiations with the respective agents and lenders on two of its subsidiaries� credit agreements to amend the facilities to reduce fees and expenses, in addition to other modifications. McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott�s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees, and can be found on the internet at www.mcdermott.com. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may adversely impact the expectations expressed in these forward-looking statements. The forward-looking statements in this press release include statements regarding the lower costs associated with letters-of-credit and improvement in our financial flexibility as a result of our improved ratings. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation, adverse changes in the financial markets. If this or other risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual report for the year ended December 31, 2006 filed with the Securities and Exchange Commission.