Standard & Poor’s Lowers Fluor Debt Rating

Standard & Poor’s Corp. on Thursday downgraded Fluor Corp.’s senior debt rating to Double-B from Triple-B-Plus and lowered the company’s commercial paper rating to Single-B from A-2.

The downgrading came 2 1/2 weeks after Moody’s Investors Service lowered its rating of Fluor Corp.’s long-term debt below what Wall Street analysts consider “investment grade” and placed a “below prime” rating on the company’s commercial paper.

Standard & Poor’s, in explaining its reasons for dropping Fluor’s debt ratings, cited “deterioration in market conditions” for the Irvine-based natural resources and construction and engineering corporation.

According to the rating agency, “profitability and cash-flow protection aren’t expected to rebound to levels supportive of the former rating category in the foreseeable future.”

Rick Maslin, a Fluor spokesman, said Fluor was disappointed with the rating but not surprised after the Moody’s assessment. “We’re confident both will be upgraded to previous levels as business conditions improve within our market,” he said. He declined to forecast when that will be.

According to Maslin, the ratings will not affect Fluor’s operation because the company has no plans to issue new debt. Greater risk ratings generally make it more expensive for companies to borrow funds in the future.