Moody's rates Flowserve loan Ba1

Moody's Investors Service said it assigned a Ba1 rating to Flowserve Corp.'s new senior secured bank facility, and affirmed the company's Ba1 corporate family rating and Ba2 probability of default rating.

Moody's also said it assigned Flowserve a SGL-1 speculative grade liquidity rating and said it will withdraw the Baa3 rating on the company's pre-existing senior secured credit facilities.

Flowserve's new senior secured facilities consist of a $500 million revolver and $500 million term loan, both due in 2015. The new facilities are secured by stock pledges whereas Flowserve's pre-existing facilities were secured by a pledge of all assets, which drives the one-notch differential between the new and old facility ratings, the agency said.

The outlook remains stable.

The ratings are supported by the company's leading market position as a provider of flow control systems and services to an assortment of end markets globally, Fitch said.

The company has grown its revenue base over time and has steadily expanded its operating margins through a focus on higher value products and aftermarket service revenues, the agency said.

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