Sweden-based engineering group Sandvik AB has announced it is considering acquiring U.S.-based drill bit manufacturer Varel International Energy Services Inc. We expect the acquisition price of approximately $740 million to be predominantly debt-financed. We are placing our 'BBB+' long-term rating on Sandvik AB on CreditWatch with negative implications and affirming our 'A-2' short-term rating. The CreditWatch placement reflects the high likelihood of a one-notch downgrade on Sandvik AB when the acquisition closes. STOCKHOLM (Standard&Poor's) Jan. 9, 2014--Standard&Poor's Ratings Services today placed its 'BBB+' long-term corporate credit rating on Sweden-based engineering group Sandvik AB on CreditWatch with negative implications. At the same time, it affirmed its 'A-2' short-term rating. The CreditWatch placement follows the announcement that Sandvik
