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

VIDEO: Firefighters stop blaze from spreading after BMW crashes at Saratoga Speedway

Victoria-based businessmen were ‘corner training’ on Father’s Day when incident took place

Ginger Goodwin’s Cumberland cemetery grave desecrated

Just days before the Miners Memorial weekend, Ginger Goodwin’s grave has been… Continue reading

Cannabis store proposed for west side of Courtenay

Courtenay Council has approved second reading of a zoning amendment for a… Continue reading

North Island College celebrates 150th bachelor of business administration graduate

The North Island College School of Business marks a milestone in 2019… Continue reading

Former volleyball star runs to kill cancer

Since 2012, Stephanie Kurz has been pushing herself to the limit as… Continue reading

VIDEO: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

MPs hear retired B.C. nurse’s petition to change compensation for fatal medical errors

Teri McGrath wants provinces to implement no-fault system for medical errors

Horgan says he’ll still defend B.C. coast after second Trans Mountain approval

Meanwhile, one B.C. First Nation has announced plans for a legal challenge

Courtenay council adopts bylaw to regulate plastics

Courtenay council adopted a bylaw to regulate the business use of single-use… Continue reading

Demonstrators on either side of Trans Mountain debate clash in Vancouver

Crowd heard from member of Indigenous-led coalition that hopes to buy 51% of expansion project

Grieving B.C. mom hopes Facebook message leads to new investigation into son’s Surrey homicide

Criminal Justice Branch didn’t lay charges, concluding no substantial likelihood of murder or manslaughter conviction

Comox man arrested after gun incident at Quinsam Lake

43-year-old man from the Comox area has since been charged with multiple offences

B.C.’s measles vaccination program gains traction in May

More than 15,000 doses of the MMR vaccine has been administered across the province

B.C. farmers concerned Agricultural Land Reserve changes choking their livelihood

Dozens voice concerns at special meeting hosted on Vancouver Island

Most Read