Fitch assigns KBR BB+

Fitch Ratings said it assigned KBR, Inc. a first-time BB+ long-term issuer default rating. Fitch also assigned first-time BBB-/RR1 ratings to KBR's senior secured revolver, term loan A, and term loan B, as well as BB+/RR4 ratings to the senior unsecured bonds and convertible bonds. The outlook is stable.

“Fitch views KBR's long-term leverage metrics to be in line with the BB+ rating level. The agency expects leverage to improve toward 2.5x over the forecasted horizon and fluctuate somewhere between 2.5x and 4x, depending on the company's pace and magnitude of acquisitions, as well as debt repayment. Fitch assumes the company will refinance all upcoming maturities in the rating case,” the agency said in a press release.

“KBR will operate with high-single-digit to low-double-digit EBITDA margins over the next few years, with incremental expansion supported by organic reinvestment, economies of scale and improved product mix,” Fitch added.

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