...MILAN (S&P Global Ratings) April 27, 2018--S&P Global Ratings said today that its ratings and outlook on Ferrovial S.A. (###/Stable/A-2) are unchanged following Ferrovial's announcement on April 26, 2018, that it expects to register an additional provision of ú208 million (236 million) in relation to the Birmingham Highways private finance initiative (PFI) contract operated by its subsidiary Amey Plc. The provision, which will be included in first-quarter 2018 financial results to be published by Ferrovial on May 10, 2018, reflects the need to undertake additional investments during the initial phase of the contract, as well as expectations of high deductions and penalties to be applied by Birmingham City Council. We understand that Ferrovial expects a material proportion of the additional investments to be recovered through the lifecycle phase of the contract. However, new International Financial Reporting Standard 15 requires the separation of the performance obligations related to the...
