Moody’s rates TechnipFMC, convertibles Baa2

Moody's Investors Service said it assigned TechnipFMC plc a Baa2 issuer rating and a Baa2 rating to its existing €450 million unsecured convertible bonds due 2021.

The agency also assigned a Baa2 rating to the proposed senior unsecured notes being issued by TechnipFMC in exchange for $800 million of existing FMC Technologies, Inc. senior notes.

The outlook is negative.

At the same time, Moody's affirmed FMC Technologies' P-2 commercial paper rating and senior unsecured bond ratings. It withdrew FMC Technologies' issuer rating and will withdraw its senior unsecured bond ratings once the announced bond exchange is completed.

"As one of the world's largest oilfield service and equipment companies, TechnipFMC will have the ability to offer integrated services and products to a more diversified customer base than either predecessor company, which should eventually provide higher revenues," Moody's vice president Amol Joshi said in a news release.

"While the company has guided to achieving synergies of $400 million by the end of 2018, margins are likely to remain pressured through 2018 given the prolonged industry downturn."

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