S&P: Stork on positive watch

Standard & Poor's said it placed the B long-term corporate credit rating on Stork Technical Services Holdco BV on CreditWatch with positive implications.

The agency also said it placed the B- rating on Stork's senior secured notes due 2017 on CreditWatch positive. The recovery rating remains at 5, reflecting 10% to 30% expected default recovery.

The CreditWatch placement follows news that Arle has agreed to sell Stork to Fluor Corp. for €695 million, S&P said.

The closing of the transaction is subject to anti-trust approvals in several countries and is expected to be completed in the first half of 2016, the agency said.

The CreditWatch placement reflects an expectation that Stork's credit profile will improve following its acquisition by the financially stronger Fluor group, which reported more than $1 billion in net cash as of Sept. 30, S&P said.

Fluor generated $21.5 billion in revenue in 2014, the agency added.

S&P said it believes Stork's post-acquisition credit profile will ultimately depend on its strategic importance for the wider Fluor group, given Fluor's stronger credit quality.

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