Moody’s gives KBR notes B1

Moody’s Investors Service said it assigned a B1 rating to KBR Inc.’s planned $250 million of senior unsecured notes.

Proceeds along with cash raised through the sale of accounts receivable and revolver borrowings will fund the $827 million acquisition of Centauri Holding, which is scheduled to close in late-2020.

“KBR's recently announced decision to no longer pursue fixed-price engineering construction procurement contracts within the energy sector should raise the company's margin profile, lessen income volatility and lower contingent liabilities – factors that may ultimately support a higher rating,” said Bruce Herskovics, Moody's lead analyst for KBR, in a press release.

The agency revised the outlook to positive from stable and affirmed its ratings for the company, including the Ba3 corporate family rating. The positive outlook recognizes KBR’s opportunity to more fully focus the organization toward the realization of potential as a national security services contractor, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.