Fitch Assigns Continued Investment Grade Rating for Aker Solutions
Fitch Ratings has confirmed Aker Solutions ASA's long-term Issuer Default Rating (IDR) and senior unsecured rating at 'BBB-' respectively, and assigns a local currency IDR of 'BBB-'. The agency has simultaneously removed Aker Solutions from Rating Watch
Negative (RWN), and assigned a negative outlook.
"We are pleased about Fitch's confirmation of our investment grade rating. We see the negative outlook as a reminder of the short term
uncertainties in the world economy in combination with our debt financed investments for future growth. We remain confident that these acquisitions will serve our strategy and shareholders well, and appreciate that Fitch acknowledge the positive effect we predict for the margin picture in the medium term," says Simen Lieungh, President and CEO of Aker Solutions ASA.
Fitch underlines that Aker Solutions' ratings are constrained by the cyclical process and oil and gas industries, with its earnings being largely dependent on the operating and capital expenditure of oil and gas majors.
"We see our recent contract wins in Russia (Sahkalin I), Kazakhstan (Kashagan Hook Up) and the North Sea (StatoilHydro well service
contract with options) as strong confirmations of the positive outlook for our industries in the medium to long term," Lieungh ends.
- Aker BP Buys Hess' Norway Unit For $2B (Oct 24)
- Aker Completes More Than Two-Thirds of Cost-Cutting Program (May 09)
- Aker Solutions Reduces Total Headcount by Almost 5,000 Since 2014 (Mar 30)