Bulletin: CIMIC's Exit From The Middle East Consistent With Group Strategy - S&P Global Ratings’ Credit Research

Bulletin: CIMIC's Exit From The Middle East Consistent With Group Strategy

Bulletin: CIMIC's Exit From The Middle East Consistent With Group Strategy - S&P Global Ratings’ Credit Research
Bulletin: CIMIC's Exit From The Middle East Consistent With Group Strategy
Published Jan 23, 2020
2 pages (1155 words) — Published Jan 23, 2020
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Abstract:

MELBOURNE (S&P Global Ratings) Jan. 24, 2020--S&P Global Ratings today said that the ratings on CIMIC Group Ltd. (BBB/Stable/A-2) are unaffected by the company's decision to exit CIMIC's BIC Contracting (BICC) operations in the Middle East. In addition, the stand-alone credit profile on CIMIC and group credit support for CIMIC from its parent, Spanish construction group ACS, Actividades de Construccion y Servicios SA (ACS, BBB/Stable/A-2), remain unchanged (see bulletin: "ACS' Expected Proceeds From Disposals Will Offset The Cash Outlay Related To CIMIC's Exit From The Middle East", published Jan. 23, 2020). Following an extensive strategic review of its non-controlling 45% interest in BICC, CIMIC Group initiated a process for its disposal or discontinuance. The company's exit from the region is

  
Brief Excerpt:

...January 23, 2020 MELBOURNE (S&P Global Ratings) Jan. 24, 2020--S&P Global Ratings today said that the ratings on CIMIC Group Ltd. (###/Stable/A-2) are unaffected by the company's decision to exit CIMIC's BIC Contracting (BICC) operations in the Middle East. In addition, the stand-alone credit profile on CIMIC and group credit support for CIMIC from its parent, Spanish construction group ACS, Actividades de Construccion y Servicios SA (ACS, ###/Stable/A-2), remain unchanged (see bulletin: "ACS' Expected Proceeds From Disposals Will Offset The Cash Outlay Related To CIMIC's Exit From The Middle East", published Jan. 23, 2020). Following an extensive strategic review of its non-controlling 45% interest in BICC, CIMIC Group initiated a process for its disposal or discontinuance. The company's exit from the region is due to what it considers to be an accelerated deterioration of local market conditions, and to focus on Australia, New Zealand, and Asia Pacific. CIMIC expects the decision to cost...

  
Report Type:

Bulletin

Ticker
LEI@AU
Issuer
GICS
Construction & Engineering (20103010)
Sector
Global Issuers, Structured Finance
Country
Region
Pacific
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: CIMIC's Exit From The Middle East Consistent With Group Strategy" Jan 23, 2020. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-CIMIC-s-Exit-From-The-Middle-East-Consistent-With-Group-Strategy-2372401>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: CIMIC's Exit From The Middle East Consistent With Group Strategy Jan 23, 2020. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-CIMIC-s-Exit-From-The-Middle-East-Consistent-With-Group-Strategy-2372401>
  
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