Fitch snips Enviva

Fitch Ratings said it downgraded Enviva Inc.'s long-term issuer default rating to C from CCC- and removed it from rating watch negative. The agency also cut Enviva's senior unsecured debt to C/RR5 from CC/RR5.

“The downgrade reflects Enviva's missed Jan. 16 interest payment of $24.4 million on its $750 million of 6½% senior notes due 2026,” Fitch said in a press release.

Enviva entered a 30-day grace period to cure the covenant breach. “This development follows worsening operating losses and Enviva's announcement last fall of substantial doubt regarding its ability to continue as a going concern. Considerable uncertainty exists regarding Enviva's ability to renegotiate uneconomic customer contracts entered into 4Q22 and the company's related $300 million liability,” the agency said.

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