S&P rates Fluor converts BBB+

Standard & Poor's said it assigned its BBB+ senior unsecured rating to Fluor Corp.'s proposed $300 million convertible senior note offering due 2024 and affirmed its A- corporate credit rating and its other ratings and stable outlook.

S&P said the ratings reflect Fluor's conservative financial policies and profile, tempered by its leading business position within highly competitive and cyclical markets that have above-average business risks.

The agency said liquidity is satisfactory and a key underpinning to the ratings. Fluor had about $500 million of cash at Dec. 31. However, a significant portion of that cash may be located at projects and/or in foreign locations, reducing immediate liquidity. In addition, at Dec. 31 Fluor had ample borrowing capacity under its $350 million bank credit facility, access to the commercial paper market, and limited near-term scheduled debt amortization, the agency said.

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