Moody's Changes Outlook On Petrofac Ratings To Stable From Negative

22nd Mar 2018 17:51

LONDON (Alliance News) - Moody's Investors Service on Thursday said it has changed the outlook on Petrofac Ltd's ratings to stable from negative.

At the same time, Moody's affirmed the group's Ba1 corporate family rating, the Ba1 rating on the USD677 million senior unsecured notes due October 2018 and assigned a Ba1-PD probability of default rating.

The stable outlook reflects Moody's expectation that Petrofac will continue to win new contracts and gradually stabilize its still shrinking order backlog through 2018.

"The outlook stabilization takes into account the improving trend in Petrofac's order intake during 2017 and in the first quarter of 2018, which was ahead of our expectations and indicates only limited, if any, reputational risk associated with the ongoing SFO investigation so far", said Goetz Grossmann, Moody's lead analyst for Petrofac.

"It further recognizes the group's improved credit metrics in 2017, such as a 2.5x Moody's-adjusted debt/EBITDA ratio, which provide greater headroom for Petrofac in the Ba1 rating category", added Grossmann.

Shares in Petrofac closed up 1.2% at 512.201 pence on Thursday.

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