Fitch lifts Flowserve outlook to positive

Fitch Ratings said it affirmed Flowserve Corp.'s issuer default rating and senior secured bank facilities at BB+ and revised the outlook to positive from stable.

The agency said the positive outlook reflects Flowserve's low leverage, its solid operating performance and Fitch's expectation that the company will continue to follow disciplined financial policies. At Sept. 30, the debt-to-EBITDA ratio was 0.8 times.

Rating concerns include uncertainty about the timing of improvement in Flowserve's end-markets, the possibility of higher leverage from future acquisitions and pricing and competitive pressure related to lower project activity, Fitch said.

In the agency's view, these concerns are offset by expectations for long-term growth in the company's infrastructure markets and a solid backlog, which stood at $2.7 billion as of Sept. 30.

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