Moody’s downgrades Infinis

Moody’s Investors Service said it downgraded to B1 from Ba3 the corporate family rating of Infinis Energy plc.

Moody’s also said it downgraded the company’s probability of default rating to Ba3-PD from Ba2-PD.

The agency also downgraded the rating on Infinis plc’s £350 million senior unsecured notes due 2019 to B1 from Ba3.

This concludes a review of the ratings that began in July following the decision by the U.K. government to remove the exemption for renewable power generators from the Climate Change Levy tax, Moody’s said.

The outlook is stable.

The agency said it expects Infinis’s leverage to remain high for longer than expected due to the soft power-price environment, Moody’s said.

Mitigating measures that the group could announce by the time of its interim results in November are not expected to fully compensate for the loss of revenue, the agency added.

Moody’s said it considers positively the company’s strategy to invest in onshore wind assets, which will reduce its reliance on a declining landfill-gas resource.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.