S&P: SNC-Lavalin view to negative

Standard & Poor's said it revised the outlook to negative from stable and affirmed the A- rating on SNC-Lavalin Innisfree McGill Finance Inc.'s C$764.1 million senior secured bond due June 30, 2044 and C$392.5 million senior secured construction bank facility due Sept. 30, 2014.

The outlook revision is based on the dependency of the company on SNC-Lavalin Group as the main counterparty and guarantor for a construction project, S&P said.

There's a risk that as a result of a continued material delay, the construction might not be completed on time, the agency said.

The ratings are based on the strong rationale for the project because the new facilities will replace and consolidate a number of medical services and research facilities in one integrated campus, S&P said.

The ratings also consider the project agreements that provide clearly defined roles for the private- and public-sector participants with an appropriate allocation of key risks for a project of this size and type, the agency said, and a clearly defined and manageable deduction regime.

© 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.