S&P turns Enviva view to stable

S&P said it revised its outlook on Enviva Partners LP to stable from positive.

“Credit metrics are weaker than what we were projecting, due to growing debt-financed capital spending. We no longer think Enviva will maintain its debt to EBITDA below 4x on a sustained basis, as the partnership is looking to partially finance with debt its growing capital expenditure (capex) program and acquisitions. Enviva's leverage ratio was higher than our previous expectation at above 5.5x at the end of 2020, largely due to higher debt,” the agency said in a press release.

S&P said it now forecasts Enviva’s metrics will be about 4.8x by 2021 and 4.4x by 2022.

Concurrently, S&P affirmed the BB- issuer credit rating and the B+ issue-level rating on the partnership's senior unsecured notes. The recovery rating is unchanged at 5 and indicates modest (10%-30%, rounded estimate: 20%) recovery in default.

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