Moody’s revises MEIF Renewable to negative

Moody's Investors Service said it affirmed MEIF Renewable Energy UK plc’s Ba2 corporate family rating, Ba1-PD probability of default rating and the Ba2 rating on its £190 million senior secured notes due 2020.

The outlook on all ratings was changed to negative from stable.

The change in outlook was prompted primarily by the announcement by the U.K. Chancellor of the Exchequer, George Osborne, in the Summer Budget on July 8 of government's intention to remove the exemption of Renewable Source Energy from the Climate Change Levy (CCL), a tax on energy use. The agency expects that this policy decision will be implemented from August 2015, when the finance bill used to enact decisions set out the Budget is likely to be passed into law.

Moody's considers the change to be credit negative for all renewable power generators.

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