S&P downgrades ST Engineering's credit rating to "AA+" following debt-funded TransCore acquisition

The Edge Singapore
The Edge Singapore3/23/2022 11:16 PM GMT+08  • 3 min read
S&P downgrades ST Engineering's credit rating to "AA+" following debt-funded TransCore acquisition
The US$2.7 billion acquisition of TransCore is ST Engineering's largest to date / ST Engineering
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ST Engineering’s credit rating has been downgraded by S&P from AAA to AA+, following its US$2.7 billion acquisition of US traffic management firm TransCore that’s largely funded by debt.

“We downgraded ST Engineering given the company's growth appetite will keep its debt level elevated for at least the next two to three years,” states S&P. Prior to TransCore, which is ST Engineering’s largest acquisition to date, the company, in a bid to generate growth in new business areas, have made a couple of other big acquisitions.

While S&P downgraded the rating, it has tacked a “stable” outlook.

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