Vallourec Achieves 'Investment Grade' Rating by Moody's and S&P Global
Vallourec has received a positive revision of its credit ratings by Moody's and S&P Global, with both agencies assigning the company 'Investment Grade' status.
Credit Rating Upgrade
According to Vallourec's press release, the company specializing in premium tubular solutions has had its credit ratings upgraded by Moody's and S&P Global. Moody's raised the rating from Ba1 to Baa3, while S&P Global upgraded their assessments from BB+/B to BBB-/A-3. These new ratings assigned by the two agencies come with a stable outlook, following Fitch also granting an 'Investment Grade' rating in April 2025.
Strategic Transformation and Financial Resilience
In its assessment, Moody's highlighted Vallourec's successful strategic transformation, noting a shift towards higher value-added products and a significant reduction in fixed costs since 2022. S&P Global believes that Vallourec's improved profit margins are sustainable, which makes the company's business model more resilient. The agency expects Vallourec's position in the global premium OCTG market to support substantial cash flows, despite global economic uncertainties.
Executive Leadership's Perspective
Philippe Guillemot, Chairman of the Board and CEO of Vallourec, stated that this recognition by the three major rating agencies underscores the company's financial strength and its ability to generate cash flows. With the expected improvement in converting earnings into cash, Vallourec hopes to continue optimizing its balance sheet and accessing bond markets under more favorable conditions. The company, listed on Euronext Paris, operates in about twenty countries and has approximately 13,000 employees.
