Fitch ups Fluor outlook to stable

Fitch Ratings said it changed Fluor Corp.'s outlook to stable from negative and affirmed the company's A- issuer default rating, A- senior unsecured bank facilities and notes and F2 commercial paper rating.

The agency said the outlook revision reflects solid growth in Fluor's revenue and backlog, Fitch's expectation that the company will maintain stable liquidity and financial measures even as it initiates work on its project backlog and the resolution and collection by Fluor of significant claims on the completed Hamaca project during 2005.

The ratings also incorporate Fluor's franchise presence in its engineering and construction activities, the company's history of profitability, diversification provided by a broad mix of projects and Fluor's relatively stable construction services businesses.

Fitch said rating concerns include exposure to economic cycles, working capital requirements related to a growing project portfolio and the risk of project losses inherent in the engineering and construction industry.

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