S&P downgrades Weir to BBB

Standard & Poor's said it lowered its long-term corporate credit rating on Weir Group plc to BBB from BBB+.

The outlook remains negative and the short-term rating was affirmed at A-2.

S&P said the action reflects Weir’s weaker credit metrics due to the unprecedented and prolonged downturn in its end markets. The company's exposure to the struggling North American oil and gas upstream market was compounded by weakness in the mining sector, its other key end market. Credit strengths such as its high proportion of aftermarket revenues and istorically resilient profitability have not provided the expected earnings cushion against the current downturn.

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