SNCAF - SNC-Lavalin: Don't Be Tempted To Catch This Falling Knife
Thesis
SNC-Lavalin Group Inc. (SNCAF), a Canadian engineering and construction firm with substantial global operations has been found at the center of a political scandal involving the Prime Minister of Canada. SNC recently reported disappointing Q4 results following updated guidance that quarterly earning would be materially impacted by operational challenges. In addition to its poor quarterly results, SNC announced that it would be cutting its dividend by two thirds. As a consequence of its troubled balance sheet and embattled legal position, S&P Global Ratings has downgraded the company's debt. On top of these