Moody's upgrades Flowserve

Moody's Investors Service said it upgraded Flowserve Corp.'s senior secured bank facility rating to Baa3 from Ba1.

As Flowserve is now an investment grade issuer, Moody's withdrew the company's Ba1 corporate family rating, Ba2 probability of default rating and SGL-1 speculative grade liquidity rating.

The outlook is stable.

"Flowserve's ratings upgrade is supported by the clarity of its capital structure strategy and our expectation that the company will maintain its adjusted debt/ EBITDA between 1.5x and 2.5x through the economic cycle," Moody's vice president Darren Kirk said in a news release.

"As well, we expect Flowserve will maintain good liquidity as it implements its recently announced $1 billion stock repurchase program," Kirk added in the release.

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