Moody's rates Infinis notes B1

Moody's Investors Service said it assigned B1 corporate family and Ba3 probability-of-default ratings to Infinis Holdings and a provisional B1 senior unsecured rating to the £275 million senior notes due 2014 to be issued by Infinis plc.

The outlook is stable.

Ratings are supported by strong cash flow generation from Infinis' electricity production across a diversified portfolio of landfill sites, by management's significant experience in the area and by the attractive regulatory incentives for renewable electricity generation, according to the agency.

Ratings are constrained by the limited scale of the group's operations, exposure to volatile electricity prices, landfill gas reserves that will decline over time, high financial leverage and significant refinancing risk, the agency noted.

Consolidated leverage on a debt to EBITDA basis is expected to be close to 4x.

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