Foster Wheeler LLC, a subsidiary of Swiss-based construction firm Foster Wheeler AG (NASDAQ: FWLT), snagged a ratings boost from Moody’s today. The company’s debt is now rated ‘Baa3’ with a stable outlook.
A Moody’s spokesman noted:
The ratings upgrade reflects Foster Wheeler’s demonstrated ability to profitably bid and execute on key projects through prolonged cyclical pressures while maintaining its key credit metrics at levels consistent with an investment grade rating.
The stable outlook reflected a change from the company’s previous positive outlook:
The stable outlook reflects Moody’s view that FW’s operating results will begin to trend higher over the next 12 to 18 months, but that the company’s cyclical exposure and potential for share repurchases and/or acquisition activity will prohibit further upwards rating movement near term.
Foster Wheeler’s shares are up about 1% at $23.35 in a 52-week range of $16.40-$38.74.