Moody’s: Amec Foster Wheeler view to developing

Moody's Investors Service said it affirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of Amec Foster Wheeler plc (AMFW).

Concurrently, the agency changed the outlook to developing from stable.

"The change in outlook considers as a positive the announcement on 13 March that Wood Group – a UK based engineering services business - has offered to acquire Amec in an all share transaction. If this transaction is implemented as outlined, AMFW will become part of a larger and better capitalized group," Scott Phillips, Moody's vice president, senior analyst and lead analyst for Amec Foster Wheeler, said in a news release.

"But the outlook also reflects, as a negative, the sustained high leverage of Amec, the slower than expected process it has made on disposals and the anticipation of a further deterioration in future free cash flow."

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