04:10 PM EDT, 08/16/2024 (MT Newswires) -- KBR (KBR) closed nearly 1% lower, easing from a small gain earlier Friday, after S&P Global Ratings raised its credit rating by one notch to BB+ from BB previously, citing improved credit metrics at the large-scale construction and engineering company.

Revenue and margins for KBR's earnings before interest, taxes, depreciation and amortization have been growing during 2024, the S&P analysts said, pointing to its $737 million acquisition of aerospace contractor LinQuest announced on July 16. The deal also should eventually deliver better EBITDA- and funds from operations-to-debt ratios, although it may take a year or so for those benefits to fully arrive, they said.

The ratings firm also believes LinQuest will strengthen KBR's relationship with customers in its government solutions segment and allow the company to tap into its internal capabilities to fulfill portions of its contracts instead of relying on subcontractors, bolstering profits.

S&P's overall outlook for KBR was stable.

Price: 65.45, Change: +0.01, Percent Change: +0.02