Moody’s downgrades TechnipFMC

Moody’s Investors Service said it downgraded TechnipFMC plc and assigned a Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-2 speculative grade liquidity rating. The agency withdrew its Baa3 issuer rating.

Moody’s affirmed TechnipFMC’s $1 billion guaranteed senior unsecured notes due 2026 Ba1 rating and lowered the rating of its $500 million senior unsecured notes due 2022 to Ba2 from Baa3. The 2022 notes should be repaid in the near-term, and its rating will be withdrawn upon repayment.

The agency lowered TechnipFMC’s ratings and placed them on review for downgrade on Jan. 7. These actions conclude the review following its spinoff of its Technip Energies segment into a stand-alone public company.

“TechnipFMC's Ba1 rating reflects its higher leverage that we do not expect to reverse over the near-term," said Amol Joshi, a Moody's vice president and senior credit officer, in a press release. "TechnipFMC's size and scale is reduced after the spin-off of its Technip Energies segment, while the company has significant exposure to weak offshore drilling and development activities through its subsea business."

TechnipFMC's outlook is stable.

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