Moody's changes Weir view to stable

Moody's Investors Service said it changed the outlook for Weir Group plc to stable from negative and affirmed the existing ratings of Weir.

“The stabilization of the outlook and rating affirmations reflect Moody's expectation that the company's metrics will improve in 2021 to levels that are commensurate with the Baa3 rating,” Moody’s said.

Weir has taken several positive actions in recent months including the application of proceeds from the Oil & Gas division disposal to debt reduction and tightening of its net leverage and dividend policies. In addition, most key end markets benefit from a good market outlook which supports revenue growth and there is some potential for margin improvement in 2021 and thereafter, Moody said.

The outlook stabilization also incorporates Moody's expectation that the company will address its 2022 debt maturities in a timely manner.

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