Mobile :hones Shop: Industry: why Standard and Poor’s downgraded the rating one notch …

Monday, June 22, 2015

Industry: why Standard and Poor’s downgraded the rating one notch … – FranceTV info

Industry

The Agency rating Standard and Poor’s downgraded the rating one notch to the French group Vallourec, which is part of the cluster Burgundy Nuclear Partnership (PNB). In April, the group announced 2,000 job cuts.

BL with AFP
Published 06/22/2015 | 9:38 p.m., updated 22.06.2015 | 9:38 p.m.

L & amp; # 039; rating agency Standard and Poor & amp; # 039; its gradient d & amp; # 039; the rating one notch of the French group Vallourec, which is part of the pole competitiveness Burgundy Nuclear Partnership (PNB). © Vallourec

Monday, June 22, 2015 Standard and Poor’s placed Vallourec to BB + . The rating agency expects a weakening of profitability of the company, hit by lower oil prices.

“This deterioration reflects our view that the gross operating profit (EBITDA) and Vallourec profitability will weaken (…) in 2015 and 2016, “said the rating agency, which lowers the long-term rating of the group from BBB- to BB +, and passing it to speculative grade.

“We expect the coming quarters to low activity in the target markets Vallourec , due to low demand for oil and gas,” SP adds, judging that “the cost reductions made (by the group) should partially offset the weak demand.”

The agency, however, maintains the stable outlook of the group, which “reflects our expectations of a significant growth in 2016 EBITDA and cash flow relative to debt, after poor performance in 2015 “.

The seamless tube manufacturer, faced with a drop in its markets in the oil sector and gas, its main market, announced the end of April 2000 deleting jobs worldwide by 2017, including 1,500 in Europe.

Vallourec, which has several sites in Côte d ‘Or and Nievre, is one of the heavyweights of the Burgundian economy.
Valinox Nuclear Plant located in Montbard, Cote d’Or is one of the main sites of the Vallourec Group. This subsidiary is the world leader in tubes for steam generators of nuclear power plants. Between 1974 and 2014 Nuclear Valinox produced 40 000 km of pipes, a times the circumference of Earth.