Moody’s rates Amec Foster Baa3

Moody’s Investors Service said it assigned a Baa3 issuer rating to Amec Foster Wheeler Plc.

The outlook is stable.

Moody’s also said it assigned a provisional Baa3 rating to Amec’s €2 billion euro medium-term note program.

The ratings reflect a view that Amec’s diversification and focus on less cyclical downstream chemicals and opex oil and gas exposure should enable it to generate growing EBITDA and positive free cash flows despite the challenging market conditions, the agency said.

The ratings also consider an expectation that the company will reduce leverage for the current rating by year-end 2016, Moody’s said.

The ratings also take into account Amec’s moderate business risk profile, high customer and project diversification and its focus on low-risk cost-plus reimbursable contracts, the agency said.

The rating are constrained by the highly cyclical nature of the company’s end markets, Moody’s said.

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