S&P affirms Technip

Standard & Poor's said it affirmed the BBB+/A-2 long- and short-term corporate credit ratings on Technip.

The outlook remains stable.

The ratings continue to reflect an assessment of the company's satisfactory business risk profile and modest financial risk profile, S&P said.

The company recently announced that it intends to acquire in cash 100% of shares of Global Industries Ltd. for a total value of $1.073 billion, including about $136 million of net debt, the agency said.

The transaction is expected to be completed in early 2012 and funded through outstanding cash balances or new debt issues, S&P said.

Global Industries has an operating profitability that shows greater historical volatility than Technip's, the agency added.

Over time, Technip said it is confident that it can turn around Global Industries' operating performance, strengthen its backlog and generate meaningful cost synergies, the agency said.

S&P said the acquisition also will reinforce Technip's global positions in offshore deepwater and subsea while broadening its services offer in the subsea market.

The stable outlook reflects an expectation that Technip will continue to focus on prudent operating risk management, while adhering to a conservative financial policy, including a low net debt position on a fully adjusted basis, the agency said.

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