Fitch rates Fluor converts A

Fitch Ratings said it has assigned an A rating to Fluor Corp.'s new $300 million issue of 20-year convertible senior unsecured notes.

The outlook is negative.

Fitch said the rating incorporates Fluor's conservative financial policies and financial profile, its capacity to absorb moderate project losses, the company's franchise presence in its engineering and construction activities, and a history of profitability.

In addition, as the company gradually builds up its service businesses, it should benefit from a more diverse and stable revenue base. These businesses generated roughly one-third of operating profit in the first three quarters of 2003.

Fitch noted rating concerns include exposure to economic cycles and potential losses inherent in the engineering and construction industry.

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