S&P ups Enviva Partners

S&P said it raised its issuer credit rating on Enviva Partners LP to BB- from B+. The outlook is stable.

At the same time, S&P affirmed the B+ issue-level rating on the senior unsecured notes and revised the recovery rating to 5 from 3. The 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of a payment default.

“The upgrade reflects our assessment of Enviva's better contract profile,” S&P said in a news release.

“In 2018, Enviva has announced contracts with new counterparties, in addition to renewed agreements with existing counterparties ENGIE and Orsted. The new contracts with Marubeni Corp., Sumitomo Corp., and other Japanese counterparties improve the credit quality and geographic diversity of Enviva's counterparties.”

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