This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Aug. 26, 2024--Revenue adjustments related to legacy major projects will erode the profitability and leverage metrics of Australia-based construction and engineering firm CIMIC Group Ltd. This will have more of a bearing on CIMIC's credit quality on a stand-alone basis than our rating (BBB-/Stable/A-3), which is linked to the company's Spanish parent. CIMIC has made an A$800 million revenue adjustment reported in the first half (year ending June), reflecting mainly the settlement of claims for completed projects mostly in Asia, reversing previously recognized revenue. This does, however, improve liquidity because it accelerates cash flow through the collection of receivables and the release of restricted cash. The revenue adjustment
