S&P lowers credit rating of BWX Technologies, citing 'weaker' cash flow

S&P Global Ratings this week said it has lowered BWX Technologies' rating to "BB" because of higher capital expenditures and working capital requirements.

"Higher investment to support new programs in the Navy business and the Moly-99 project are likely to result in much higher capex and working capital investment than we had previously forecast," S&P said in its announcement. "Capex are now likely to be $280 million in 2020 compared to our previous forecast of $145 million."

S&P says free cash flow will be far lower than expected and will "result in debt levels increasing to fund the shortfall."