S&P downgrades Technip

Standard & Poor's said it lowered the long-term corporate credit rating on Technip to BBB from BBB+ after Technip announced cumulative charges of €320 million for full-year 2007.

The company's short-term A-2 rating was affirmed.

The outlook is stable.

According to S&P, the downgrade follows our reassessment of Technip's business risk profile, following the company's announcement on Jan. 30 of fourth-quarter charges of €200 million in relation to its four Qatari projects and an additional €70 million for an Asian and North American project.

These charges reflect ongoing high execution risks, notably for fixed-price construction commitments, as labor and construction markets remain tight, the agency said.

The financial impact of losses, however, should be easily absorbed, S&P noted.

© 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.