Moody’s lowers Terraform to B2, debt to B3

Moody's Investors Service said it lowered the corporate family rating of Terraform Power Operating LLC to B2 from Ba3 and the corporate family rating of Terraform Global Operating LLC to B2 from B1.

The unsecured debt rating at Terraform Power and Terraform Global was both lowered to B3 from B1 and B2, respectively.

The agency also lowered the speculative grade liquidity rating of Terraform Power to SGL-3 from SGL-2 and maintained the SGL-3 at Terraform Global.

The outlook on both entities is negative.

Both issuers are subsidiaries of Terraform Power Inc. and Terraform Global Inc., respectively, which are the publicly listed YieldCos.

Moody’s said the downgrades reflect the strained liquidity and financial position at parent Sun Edison Inc., as well as additional capital raising requirements on Terraform Power beyond what was originally expected to fund the pending Invenergy and Vivint acquisitions.

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