Moody’s might downgrade Infinis

Moody's Investors Service said it placed the B1 corporate family rating of Infinis Energy plc on review for downgrade, following the announcement by its majority shareholder, Monterey Capital II Sarl of an offer to purchase the share capital that it does not already own.

The agency also placed the Ba3-PD probability of default rating and the B1 rating on the £350 million senior notes due 2019 issued by the group's landfill gas generation business, Infinis plc, on review for downgrade.

The review for downgrade reflects the uncertainty related to the impact of the proposed transaction.

"Our decision to place Infinis' ratings on review for downgrade was prompted by the potential changes in financial policy once the group becomes private," Philip Cope, Moody's analyst and lead analyst for Infinis, said in a news release.

"Furthermore, the future business risk profile of the group might change given the stated intention to sell the wind operations."

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