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

Son of slain former Hells Angel is one of two men sentenced for crime spree

Pair’s 2017 series of robberies included convenience store in Abbotsford

The Offspring and Sum 41 announce show in Abbotsford

Bands play Abbotsford Centre on Nov. 30 as part of Canadian leg of current tour

UFV men’s basketball hosting NCAA’s Roadrunners

Cascades challenging Cal State Bakersfield in exhibition game on Monday

New hospice programs aim eyed for at-home patients and caregivers

Abbotsford Hospice Society set to launch day program for people living at home with terminal illness

Two hiking families team up to extinguish fire in Manning Park backcountry

Children and their parents worked for three hours to ensure safety of the popular hiking region

Disney Plus to launch in Canada in November

Analysts say latest streaming service may escalate cord cutting

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Okanagan bus driver assaulted for asking patron not to smoke

59-year-old in hospital with non-life threatening injuries

Mouse infestation hit Langley hospital’s kitchens

Droppings and urine were found by Fraser Health inspectors in the spring

‘Person of interest’ identified after suspicious meat left in North Delta park

Piles of meat have been dumped near the 63rd Avenue trail entrance four times in the last 30 days

B.C. sets rules for ride hailing, same minimum fee as taxis

Larger operating areas seen as threat by cab companies

B.C. mom mourns 14-year-old son whose fatal overdose was posted online

Chantell Griffiths misses the son she hadn’t seen much in recent years

Oppenheimer Park residents told to leave, clear out tents by Aug. 21

Police say park has seen influx of residents, violence in recent months

Most Read