PFI not to blame for Carillion’s collapse, says S&P Global Ratings

Carillion’s compulsory liquidation has not only disrupted the U.K.’s construction market; it has dredged public debate about the efficacy of the U.K.’s private finance initiatives (PFIs).

S&P Global Ratings’ research paper on Carillion’s collapse argues that the PFI scheme itself should not be held accountable for Carillion’s demise. The rating agency instead offers an alternative explanation, pointing to Carillion’s poor risk and debt management practices as among the principal reasons for its eventual collapse.

FM World, Infrastructure Intelligence, and the Association for Consultancy and Engineering covered the news.

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