Moody's upgrades Foster Wheeler

Moody's Investors Service said it upgraded Foster Wheeler LLC's corporate family rating and probability-of-default ratings to Ba2 from Ba3 and its senior secured bank credit facility to Baa2 (LGD1, 4%) from Baa3 (LGD1, 3%).

The outlook continues to be positive.

The agency said the upgrade reflects the significant and ongoing improvements in Foster Wheeler's operating results and financial profile driven by strong end-market demand in both its business segments and the company's ability to obtain and profitably execute key projects at rapidly escalating levels of scale. This success has resulted in what Moody's called a marked strengthening of the company's credit profile.

The ratings continue to consider Foster Wheeler's ongoing asbestos litigation issues and the potential for the company to direct its growing cash balances to acquisition activity, Moody's said.

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