Moody's upgrades Aker Kvaerner

Moody's Investors Service said it upgraded Aker Kvaerner Oil & Gas Group AS's corporate family rating to Ba1 from Ba3 and subsidiary Aker Kvaerner AS's second-priority lien notes due 2011 to Ba1 from Ba3. The outlook is stable.

The upgrade reflects the sustainable strong recovery in profitability and cash flow generation of the ring-fenced oil and gas group over the past two years, the agency said, coupled with the clear reduction in senior debt, repaid from internally generated funds.

Moody's said the ratings are based on the significant and sustained increase in operating margins achieved over the past two years, underpinned by the improved cost base, operating structure, working capital management and successful headcount rationalization initiative.

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