Moody's assigns KBR facility Ba1

Moody's Investors Service said it assigned Ba1 ratings to the first-lien credit facility of KBR, Inc., and concurrently withdrew the former Ba2 ratings on KBR's prior first-lien facility.

The agency upgraded the company's speculative grade liquidity rating upgraded to SGL-1 from SGL-2 following its recent refinancing transaction.

The Ba3 corporate family rating, Ba3-PD probability of default rating and the stable outlook are unaffected, Moody’s said.

"The Ba1 ratings assigned to the first-lien credit facility are two notches above the company's corporate family rating, reflecting the significant layer of effectively junior debt and non-debt claims in the consolidated capitalization that would absorb first losses in a stress scenario and thereby afford a debt cushion for the benefit of first-lien secured lenders," said Bruce Herskovics, Moody's lead analyst for the company, in a press release.

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