Foster Wheeler Corporate Credit Rating Raised by Standard & Poor's
Posted: 25 April 2005
Foster Wheeler Ltd. has reported that Standard & Poor's (S&P) has raised Foster Wheeler's corporate credit rating to "B-." This new rating replaces the S&P rating of "selective default" or "SD" which applied following completion of the Company's successful equity-for-debt exchange completed during the second half of 2004.
S&P continued its "default" rating on the Company's 9.00% Preferred Securities. This "default" rating is required by S&P's corporate ratings criteria if a company defers a payment on a preferred dividend. The terms of the Preferred Securities permit quarterly payments to be deferred for periods of up to five years during which time additional interest accrues. In accordance with these provisions, the Company has elected to defer payments on the Preferred Securities since the second quarter of 2002. The deferral does not constitute a default under the terms of the Preferred Securities or of any of the Company's other financing instruments.
S&P also rated the Company's Senior Secured Notes due 2011 as "CCC+."
"We are pleased that S&P has chosen to raise our corporate credit rating," said Raymond J. Milchovich, chairman, president and chief executive officer. "Our objective for 2004/2005 was to successfully restructure the company's balance sheet and operations. I believe we have achieved these objectives. We reduced corporate indebtedness by $463 million during 2004, to $570 million. We also extended substantially all corporate debt maturities to 2011. In addition, we have recently closed a new $250 million, five-year Senior Credit Agreement. As previously disclosed, we believe we have adequate liquidity for our working capital needs throughout 2005."
"Clients are investing in a number of business sectors in which we have a strong competitive position and our operations are fully focused on booking new business, building backlog, and delivering "best in class" products and services which consistently meet or exceed our clients' expectations."
Posted by Editor Pipeline Magazine
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