S&P downgrades Senvion

S&P said it lowered the rating on Senvion Holding GmbH to SD (selective default) from CC, along with the rating on the company's senior secured notes to D from CC.

The agency also said it lowered the rating on Senvion's super senior secured revolving credit facility to CC from CCC.

On May 1, Senvion elected to miss the interest payment due on its €400 million senior secured notes due 2022, the agency explained.

S&P said it believe the company's decision to miss the payment was in order to preserve its liquid funds and financial flexibility under its self-administered insolvency.

The agency said it believes the company will not remedy the missed payment because it had sufficient liquid funds available to make the interest payment due.

Senvion remains current on all payment obligations for its super senior facility due April 2022, but the rating was downgraded because S&P expects it to miss its next interest payment due at end-June 2019, with default then imminent, the agency said.

Discussions with lenders, bonds holders and major shareholders are continuing for the company to find solutions to restore its financial flexibility, the agency added.

S&P said it re-evaluate the ratings on Senvion when it becomes clear if it will continue to make its payments on other financial obligations, including its super senior facility that includes its bonding facility and revolving credit facility.

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