Moody’s drops Infinis Energy to B3

Moody's Investors Service said it downgraded Infinis Energy Ltd.’s corporate family rating to B3 from B1 and probability of default rating to B3-PD from Ba3-PD.

The agency also affirmed the B1 rating on the £350 million unsecured notes due 2019 issued by the group's landfill gas generation business, Infinis plc, and changed the LGD assessment to LGD3 from LGD4.

The outlook remains negative.

Moody’s said the downgrade of the corporate family and probability of default ratings reflects: (a) That the consolidated group's leverage has been significantly above guidance for the previous rating level since February 2016 (debt/EBITDA was 6.7 times at March 31, 2016); and (b) the lack of demonstrable progress on the sale of one or both of the group's two businesses (landfill gas and onshore wind), which entails that leverage could remain high for longer than previously expected.

Although separate sales processes are underway, the agency believes that there is significant uncertainty over the timing of the transaction(s) being concluded.

© 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.