TechnipFMC: S&P puts rating on watch list

(CercleFinance.com) - In turn the credit rating agency S&P Global has reacted to the the oil services group TechnipFMC project to split its engineering and construction division.


Analysts believe that the assets that will remain in the scope of the future group ("RemainCo", according to its provisional name), focused on the Subsea segment for about 80% of sales, will be more exposed to the volatility of the offshore oil and gas markets.

Indeed, TechnipFMC has not yet disclosed how it intends to distribute the capital between "SpinCo" (the engineering and construction division that will be split) and "RemainCo", although the agency believes that (RemainCo) will be more indebted, S&P's note predicts.

As a result, while S&P Global maintains its 'BBB+' rating on TechnipFMC's long-term debt, it has placed on its negative watch list, which may mean a future downgrade.


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