Investing.com -- Moody's (NYSE: MCO ) Ratings has upgraded the senior unsecured notes due 2026 of TechnipFMC plc to Baa3 from Ba1, while maintaining a positive outlook for the company. The ratings agency also withdrew TechnipFMC's Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating, and SGL-2 Speculative Grade Liquidity rating. The Not Prime backed commercial paper rating for FMC Technologies (NYSE: FTI ), Inc., a subsidiary of TechnipFMC, was affirmed.

According to Amol Joshi, Moody's Ratings Vice President and Senior Credit Officer, the upgrade and positive outlook for TechnipFMC's notes are based on the expectation of a significant improvement in the company's credit metrics. The company's earnings are predicted to grow rapidly through 2026.

The positive outlook is also supported by the expectation of substantial improvement in TechnipFMC's credit metrics, driven by strong revenue and earnings growth, along with further debt reduction. The company has seen an increase in demand for its subsea business and is expected to generate substantial free cash flow.

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