Moody's lifts Flowserve outlook to positive

Moody's Investors Service said it changed Flowserve Corp.'s outlook to positive from stable and affirmed its Ba3 corporate family rating, B1 probability-of-default rating and Ba2 (LGD2) senior secured credit facilities. The loss-given-default rate assigned to the loans was changed to 19% from 20%.

The agency said the outlook change anticipates continued strong end market demand for Flowserve's product offerings, which should support robust earnings and cash flow and improved coverage ratios. In conjunction with debt repayment achieved over the last several years, these favorable operating results should enable the company to sustain financial metrics that are supportive of a higher rating, Moody's predicted.

Flowserve's Ba3 corporate family rating considers the company's leading market position as a provider of pumps, valves and mechanical seals; its particular strength in the energy and infrastructure markets, which may offer favorable demand patterns even as economic trends soften; and a global customer base with a good representation of aftermarket service revenues, the agency said.

Moody's noted that Flowserve continues to work to resolve legal and regulatory issues related to U.S. export control laws.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.