The head office of SNC Lavalin are seen Thursday, February 19, 2015 in Montreal. (Ryan Remiorz/The Canadian Press)

Standard & Poor’s downgrades SNC-Lavalin, citing charges and diplomatic feud

Agency also highlighted the prospect of a ban of up to 10 years on contracts with the Canadian government

Debt rating agency Standard & Poor’s has downgraded SNC-Lavalin Group Inc., citing problems at a Chilean mining project, damaged business relations with Saudi Arabia and criminal charges against the beleaguered engineering giant.

The agency says a pair of slashed profit forecasts from SNC-Lavalin in the past three weeks — which first halved the per-share earnings target and then cut it again by more than 40 per cent — will make for a higher debt ratio.

The downgrade to BBB- from BBB notes the Montreal-based company has halted all bidding on future mining projects following a dispute with Chile’s state-owned copper mining company Codelco, now entering arbitration.

Standard & Poor’s says SNC-Lavalin’s growth prospects for oil and gas have “deteriorated” as the diplomatic feud continues between Canada and Saudi Arabia.

READ MORE: Ethics watchdog probes alleged PMO interference in SNC-Lavalin case

READ MORE: Opposition parties push for emergency meeting on SNC-Lavalin case

The agency also highlighted the prospect of a ban of up to 10 years on contracts with the federal government in Canada.

The ban is one possible outcome that could flow from a conviction on fraud and corruption charges stemming from alleged dealings with the Libyan regime under Moammar Gadhafi between 2001 and 2011.

The downgrade came after the federal ethics commissioner launched an investigation into allegations the Prime Minister’s Office put pressure on former attorney general Jody Wilson-Raybould to help the company avoid a criminal prosecution. Prime Minister Justin Trudeau has denied directing Wilson-Raybould on the matter.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Salmon Arm thrift stores temporarily refuse donations to keep up with glut

Too much stuff for storage space, staff shortage, main reasons for sporadic closures

CSRD to assess rural Sicamous, South Shuswap housing needs

UBCM to provide $33,000 through 2019 Housing Needs Reports initiative

Shuswap woman protests for family court reform

Goals include increased resources for people who wish to represent themselves

Salmon Arm pool to close for maintenance

SASCU Recreation Centre shutdown to last for two weeks, re-opens Sept. 9

Alberta man killed in Highway 97A collision south of Sicamous

Aug. 16 crash under investigation by the RCMP and BC Coroners Service

VIDEO: Title of 25th Bond movie is ‘No Time to Die’

The film is set to be released in April 2020

RCMP catch ‘erratic’ driving thieves; upon release steal mountain bike

The incident involved a police chase, taser, and a destroyed vehicle

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

B.C. father tells judge he did not kill his young daughters

Andrew Berry pleaded not guilty to the December 2017 deaths

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

Riot on the Roof returns to top of North Okanagan Parkade

Party of the summer will rock out above the city

Heavy police responses in Kamloops connected to unfounded weapons calls

Mounties were seen in Westsyde and in North Kamloops on Tuesday night and Wednesday morning

Letter: Festivalgoer says thank you by shopping in Salmon Arm

Writer expresses gratitude to Roots and Blues and community

Suspect drops white powder running from police near Kelowna playground

Kelowna RCMP responded to reports of two individuals swinging a chain in a park

Most Read