Moody’s upgrades ratings of Flowserve on $950 million in debt, cites strong ‘09 results
By APThursday, March 4, 2010
Moody’s upgrades ratings of Flowserve
NEW YORK — Moody’s Investors Service on Thursday upgraded Flowserve Corp.’s corporate family rating, saying that the maker of pumps, valves and mechanical seals is showing it can weather the recession.
Moody’s raised Flowserve’s corporate family rating to “Ba1″ from “Ba2.” It also raised the probability of default rating to “Ba2″ from “Ba3″ and the rating for its senior secured credit facility to “Baa3″ from “Ba1.”
The ratings cover $950 million in debt.
Moody’s said Flowserve, based in Irving, Texas, recorded stable sales with modestly stronger operating margins in 2009. And it said the company has maintained strong credit metrics during difficult economic times.
“This performance compared very favorably to diversified manufacturing peers and contributed to further improve the company’s already strong key credit metrics and its excellent liquidity position,” Moody’s said.
Flowserve shares fell 18 cents to $105.53 Thursday afternoon. The shares are near their 52-week high of $108.85. The low for the past year has been $43.23.
