Moody’s changes SPX Flow to negative

Moody's Investors Service said it changed SPX Flow, Inc.’s rating outlook to negative from stable to reflect Flow's elevated leverage, and ongoing market weakness in the company's end markets.

The agency affirmed the Ba2 corporate family rating, Ba2-PD probability of default rating and the Ba3 rating on the $600 million senior unsecured notes.

The speculative grade liquidity rating was lowered to SGL-3 from SGL-2.

Moody’s said the outlook change reflects the expectation of further near-term weakening in performance as over 20% of SPX Flow's revenues are exposed to the oil and gas sector that is undergoing major uncertainties. Expectations for a weak 2016 follows a difficult 2015 where the company's performance was affected by the strengthening of the U.S. dollar, the impact of weak oil and gas end market and weakness in its power and energy, food and beverage and industrial end markets, the agency said.

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