Petrofac credit rating cut to high-risk amid probe of Monaco’s Unaoil | The National

Petrofac credit rating cut to high-risk amid probe of Monaco’s Unaoil | The National:

"Petrofac, a London-listed oil services group with operations in Abu Dhabi and Sharjah, has had its debt rating cut to high-risk status after the Serious Fraud Office (SFO) in the UK announced last month that it is investigating the company as part of its wider examination into the dealings of Monaco-based oil consultancy Unaoil. The move by Moody’s Investors Service to downgrade Petrofac’s debt rating one notch to Ba1 – or "junk" status – adds further pressure to Petrofac’s cost and ability to raise capital in the debt markets. "While the outcome of the [SFO] investigation is uncertain, it could result in financial penalties that would negatively affect profitability if any allegations are proven," said Scott Phillips, Moody’s Petrofac credit analyst. "The investigation, as well as the suspension of the group’s chief operating officer, could undermine the group’s reputational standing to the detriment of new construction orders," he added."



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