Adecco faces dual accounts probe
Both the US Securities & Exchange Commission and the US Attorney's Office in Manhattan are to open inquiries into accounting difficulties at employment giant Adecco.
Link: Audit problems send Adecco shares tumbling
According to reports in the Wall Street Journal the dual probe comes after Adecco delayed the release of its full year earnings report due to ‘material weaknesses in the its internal controls’ at its North American Adecco Staffing division as well as possible problems in other countries.
The scandal at the £11.1bn business, which employs 28,000 people in 68 countries, has sent its share price tumbling and markets are braced themselves for further cuts to Adecco’s credit standing after agencies last night slashed its debt rating.
Moody’s and Standard & Poor’s have cut Adecco’s long-term debt ratings and warned further downgrades may be on the way. The group is now just one notch above junk status.