S&P cuts Petrofac to B+, withdraws rating

S&P said it lowered its long-term issuer credit rating on Petrofac Ltd. to B+ from BB+ and placed the rating on CreditWatch with developing implications.

At the same time, S&P said it withdrew the rating at the company's request, after it confirmed it no longer had outstanding public debt.

The downgrade follows the Adnoc Group's announcement on March 15 that it had suspended Petrofac from bidding for new awards until further notice.

“The timing of the announcement – during challenging conditions for oil and gas (O&G) contractors, the current refinancing of Petrofac's $1 billion revolving credit facility (RCF), and the continuing U.K. Serious Fraud Office (SFO) investigation – led us to lower our rating on Petrofac to B+,” S&P said in a news release.

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