S&P upgrades Flowserve

Standard & Poor's said it raised Flowserve Corp.'s corporate credit rating to BB+ from BB and its secured credit facility to BB+ with a recovery rating of 3.

The outlook remains positive.

The agency said the ratings on Flowserve reflect the company's satisfactory business risk profile and somewhat significant financial risk profile. The company has mitigated risk by resolving certain legal and investigative issues, S&P said, and management has focused on managing debt and improving internal cash generation, resulting in better-than-expected credit metrics.

The positive outlook reflects the potential for an upgrade to a low investment-grade rating over the intermediate term if Flowserve continues to demonstrate a disciplined financial policy and credit metrics continue to outpace expectations, the agency said.

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