Moody's lowers Petrofac view to negative

Moody's Investors Service said it affirmed the Ba1 corporate family rating and the Ba1-PD probability of default rating on Petrofac Ltd.

The outlook was revised to negative from stable.

The outlook revision follows news from the U.K. Serious Fraud Office, stating that a former employee of the group pleaded guilty to 11 counts of bribery, Moody's explained.

The agency said it negatively affects the group's reputation and raises concerns from a social and government perspective, even if no charges have been brought against the company or its subsidiaries.

Moody's noted Petrofac's solid operating performance in the recent years, but also acknowledges the risk of reputational loss as a result of these allegations.

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