S&P cuts Continuum Green Energy

S&P said it lowered its ratings on Continuum Green Energy Ltd. and the senior secured notes it guarantees to B+ from BB-. The company’s notes were issued through subsidiary Continuum Energy Aura Pte. Ltd. The agency subsequently withdrew the ratings at Continuum’s request.

“The downgrade reflects our view that Continuum's interest-servicing ability will weaken due to significantly higher funding costs relative to our prior expectations. We believe Continuum will face higher borrowing costs amid challenging market conditions as credit spreads have increased sharply over the past few months. We expect the company will have to secure funding at a much higher rate than previously, given its large debt-funded capex over the next 12 months,” the agency said in a press release.

The outlook was stable at the time of the ratings withdrawal.

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