S&P puts Broadspectrum on positive watch

S&P said it placed Broadspectrum Ltd.’s BB long-term corporate credit rating, BB+ senior secured debt rating and B+ senior unsecured debt rating on CreditWatch with positive implications.

The company was formerly known as Transfield Services Ltd.

The recovery ratings remain at 2 for the company’s senior secured debt and 6 on its senior unsecured debt.

The positive watch placement follows news that Broadspectrum’s board now recommends shareholders to accept a revised acquisition offer by Ferrovial SA of A$1.50 cash per share in light of increased uncertainty related to its operations in Manus Province in Papua New Guinea, S&P said.

The acquisition by Ferrovial is positive for Broadspectrum’s creditors due to Ferrovial’s stronger credit quality, the agency explained.

If the acquisition is successful, Broadspectrum’s ratings will be assessed based on its strategic relationship and degree of integration between the two companies following the takeover, the agency said.

The ratings also will consider the uncertainties surrounding the Manus Island operation and implications on the company’s business risk profile, S&P said.

© 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.