S&P rates Flowserve loan BB+

Standard & Poor's said it assigned its BB+ issue-level rating with a 3 recovery rating to Flowserve Corp.'s $1 billion senior secured credit facility due 2015, which includes a $500 million revolving credit facility and a $500 million term loan.

The company will use the proceeds of the issuance to repay the balance on its existing facility and for general purposes, the agency said.

According to S&P, the BB+ rating and stable outlook on pump and valve manufacturer Flowserve reflect its satisfactory business risk profile, good credit measures, and its view that its liquidity is adequate following the closing of this transaction.

Although the company has the capacity to make bolt-on acquisitions, there is risk that it, absent an articulated financial policy, could modify its strategy and become more aggressive, the agency noted.

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