Fitch cuts Mowlem to BB

Fitch Ratings said it downgraded Mowlem plc's senior unsecured rating to BB from BB+ and placed it on Rating Watch Negative.

Fitch said this rating action follows Mowlem's announcement of further exceptional charges, which will push the group into a loss of about £7.5 million before interest and tax (after exceptional items) for the year to December 2004. Additionally, further capital of about £4 million is required to help fund an underperforming project in Australia.

This rating action reflects Fitch's previously expressed concerns over Mowlem's internal risk management, which brings into question the ability of management to effectively manage the business and the quality of the group's existing contracts and quite sizeable forward order book.

© 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.