Invensys, the embattled UK engineering company that has just embarked on a £2.7bn (€2.5bn) refinancing plan, has been threatened with a ratings downgrade by Moody's, the international ratings agency.

Moody's said that while it welcomed many aspects of the refinancing deal, unveiled last week, there were still long-term implications for Invensys' ability to sustain its level of debt. The agency also noted that, once the refinancing is complete, some bond holders will rank higher than others in the pecking order for repayment in the event of a default.