Moody’s cuts Petrofac to Baa2

Moody's Investors Service said it downgraded Petrofac Ltd.’s issuer rating and the ratings on its senior unsecured notes to Baa2 from Baa1.

The outlook was changed to negative from stable.

"The downgrade of Petrofac's ratings to Baa2 reflects its weaker than expected operating performance and a leverage exceeding Moody's assumptions for the rating," Douglas Crawford, Moody’s vice president, senior analyst and lead analyst for Petrofac said in a news release.

"The lower rating also incorporates the company's execution problems in certain projects in its IES division and in one project in its ECOM division and a sustained dividend in 2014 despite reduced earnings expectations."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.