Moody's lowers Petrofac

Moody's Investors Service said it downgraded the ratings on Petrofac Ltd. by one notch.

Moody's also said it withdrew the Baa3 issuer rating and assigned a Ba1 corporate family rating to the group in line with the agency's criteria for corporations with non-investment-grade ratings.

The agency also said it downgraded the rating assigned to the 2018 senior unsecured bond issued by Petrofac to Ba1 from Baa3.

The outlook is negative.

The downgrades reflect news that the Serious Fraud Office (SFO) is investigating Petrofac as part of a further inquiry into Monaco-based consultancy group Unaoil, Moody's said.

While the outcome of the investigation is uncertain, it could result in financial penalties that would negatively affect profitability if any allegations are proven, the agency said.

The investigation could undermine the group's reputational standing to the detriment of new construction orders, Moody's added.

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