Moody’s cuts Enviva

Moody's Investors Service said it downgraded Enviva Inc.'s corporate family rating to B2 from Ba3, probability of default rating to B2-PD from Ba3-PD and the senior unsecured notes due 2026 to B3 from B1.

The agency also revised the outlook to stable from negative but left the speculative grade liquidity rating at SGL-3 unchanged.

"The downgrade reflects significant governance issues arising from lack of management oversight that resulted in poor operating performance, higher costs and significantly weaker financial results versus expectations," said Domenick R. Fumai, a Moody’s vice president and lead analyst, in a press release.

The agency explained it expects Enviva will gradually reduce its leverage over the next 12 to 18 months without further erosion in operating performance.

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