Moody’s gives B1 to KBR, facilities

Moody's Investors Service said it assigned KBR, Inc. B1 corporate family and first-lien bank credit facility ratings.

The speculative grade liquidity rating is SGL-3.

The outlook is stable.

Moody’s said the ratings reflect KBR's scale, with pro-forma revenue expected of about $4.7 billion to $4.8 billion this year, project management qualifications, a high backlog and contract diversity.

“An important element in the ratings is the evolving stage of KBR's strategic shift away from commercial construction-based projects toward value-added services across the energy and government sectors, which are somewhat more stable. KBR's historic free cash flow has been volatile,” the agency said in a news release.

“Free cash flow for 2018 is expected to be negative as KBR addresses a major project still in construction.”

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