S&P turns Enviva outlook to negative

S&P said it changed Enviva Inc.’s outlook to negative from stable and affirmed its BB- issuer and B+ senior unsecured notes ratings.

Concurrently, the agency assigned B+ issue-level and 5 recovery ratings to Enviva's planned $250 million of senior unsecured tax-exempt bonds due 2032. The 5 recovery rating indicates modest (10%-30%; rounded estimate: 20%) recovery in default. The Industrial Development Authority of Sumter County is the borrower of the issue.

“We expect Enviva's leverage will be elevated in 2022. Enviva's leverage will likely be elevated at about 7.5x-8x in 2022, spurred by lower-than-expected EBITDA as a result of higher costs during the first quarter of 2022,” S&P said in a press release.

However, the agency said it forecasts Enviva’s leverage retreating to 4.5x-4.8x in 2023.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.