Moody’s changes Weir Group view

Moody's Investors Service said it changed the outlook for Weir Group plc to positive from stable.

The agency said the action reflects Weir's robust growth in EBITDA in recent years coupled with reduction in leverage and improvement in cash flow.

“The strengthening of Weir's credit metrics reflects positive underlying business trends: increasing demand for a range of metals coupled with the environmentally responsible requirements for extraction,” the agency said in a news release.

“These credit positives are counterbalanced by the smaller size of Weir's business focused on a single cyclical market although diversified geographically, as well as potential for debt-financed acquisitions given its strong cash generation.”

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