Moody’s rates Enviva B1, bond B2

Moody's Investors Service said it assigned Enviva Partners LP a B1 corporate family rating, B1-PD probability of default rating and a B2 rating to the proposed senior unsecured bond.

The agency also assigned a speculative grade liquidity rating of SGL-3.

The outlook is stable.

Moody’s said the ratings reflect the positive fundamentals for the biomass market in Northern Europe, reliance on long-term take-or-pay off-take contracts, stable regulatory environment, the company's dominant market position in the global supply of wood pellets, multiple year track record of servicing its key customers and access to cost advantageous sources of wood fiber with multiple processing facilities.

The agency expects Enviva to maintain Debt/ EBITDA, as adjusted, of around 4 times, which is appropriate for the ratings.

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