Fitch downgrades Envision

Fitch Ratings said it downgraded Envision Energy International Ltd.'s long-term foreign-currency issuer default rating and senior unsecured debt rating to BB+ from BBB-.

The agency also said it downgraded the rating on its $300 million 7½% senior notes due 2021 issued by Envision Energy Overseas Capital Co., Ltd. to BB+ from BBB-.

The ratings were removed from Rating Watch negative.

The outlook is negative.

The ratings were placed negative watch in August 2018 following the company's announcement of a transaction related to an investment in Nissan Motor Co., Ltd.'s battery business, Fitch said.

The ratings were downgraded due to an increase in the company's related-party loans, the agency explained.

The negative outlook reflects the possibility that the company's adjusted net leverage may be sustained at higher than 1.5x due to weaker EBITDA margins, investment-related outflows and uncertainty over the timing of various planned divestitures, Fitch said.

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