S&P lowers Amec Foster Wheeler

Standard & Poor’s said it lowered the long-term corporate credit rating on Amec Foster Wheeler plc to BB+ from BBB-.

The outlook is negative.

The downgrade considers the current market downturn, which will have a more severe impact on the company’s profitability and cash-flow generation than anticipated, S&P said.

Despite a relatively stable backlog, the company said it doesn’t foresee revenue growth for Amec Foster Wheeler because a significant share of its clients will likely cancel or postpone their capital expenditure investments because of lower oil prices, the agency said.

The ratings also reflect the potential volatility in the company’s ability to generate cash flow and the perceived uncertainty surrounding its working capital movements.

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