Tag: Carillion

S&P Global Ratings’ Mar Beltran explains Carillion’s accounting malpractices

Before its eventual collapse, Carillion mislabelled its financial liability to banks as “owed to creditors” rather than “borrowing”. According to the UK parliamentary committee investigating its demise, this allowed the company to avoid negatively affecting its debt-to-equity ratio and to prolong its survival. In a recent statement, Mar Beltran, senior director and lead for Infrastructure …

Continue reading

S&P Global Ratings’ Mar Beltran sheds light on Carillion’s collapse for Construction News

Writing for Construction News, S&P Global Ratings’ Mar Beltran analyses the reasons behind Carillion’s demise. The U.K. construction services firm’s troubles can be traced back to 2012. Beltran comments: “Among the main culprits are the significant impairments to projects and decreasing operational margins, which both suggest failures in risk management policies.” There are lessons to …

Continue reading

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 …

Continue reading

Actions taken by S&P Global Ratings following Carillion collapse covered by InfraNews

Following the collapse of U.K.-based construction and facilities management firm Carillion, S&P Global Ratings announced that the ratings and outlooks on the debt issued by five U.K-based and three Canada-based entities remain unchanged. For these projects Carillion had acted as a counterparty, though S&P Global Ratings states that their ratings are neither linked to nor constrained …

Continue reading

IJGlobal and InfraNews cover Standard & Poor’s new rating on UK schools building programme

Recently, the Priority Schools Midlands batch – a UK schools building programme sponsored by construction company Carillion and fund manager Equitix – reached financial close, receiving a combined equity investment close to £13.2 million. The debt was rated BBB- with a ‘stable’ outlook by Standard & Poor’s, due to expectations that construction will be completed …

Continue reading