Fitch lowers Fluor ratings

Fitch Ratings said it downgraded Fluor Corp.'s senior unsecured debt, including senior unsecured notes and senior unsecured bank facilities, to A- from A. The short-term commercial paper rating has been downgraded to F2 from F1.

The outlook has been changed to stable from negative.

Fitch said the downgrade incorporates the negative impact of increased working capital requirements, much of which is related to work on the Hamaca project and government contracts in Iraq.

Fitch said Fluor's credit profile continues to benefit from its franchise presence in its engineering and construction activities, history of profitability and increasing diversification provided by its relatively stable service businesses. Rating concerns include exposure to economic cycles and potential losses inherent in the engineering and construction industry.

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