Moody's gives Flowserve loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to Flowserve Corp.'s new $1 billion senior secured credit facilities and the corporate family rating was affirmed at Ba3.

The outlook remains negative.

The facilities consist of a $400 million revolving credit facility due 2010 and $600 million term loan due 2012.

The rating assignment and affirmation reflect the potential benefits of the new credit facility that will lower Flowserve's financing costs, extend its debt maturity and improve liquidity conditions, Moody's added.

The negative outlook continues to reflect concerns associated with a number of internal control weaknesses that the company disclosed in May, as well as the fact that the company has not publicly filed its financial results since the end of the first quarter of 2004, the agency noted.

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