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Fitch downgrades Genneia
Fitch Ratings said it downgraded Genneia SA's long-term foreign- and local-currency issuer default ratings to C from CCC. Fitch also lowered Genneia's senior unsecured notes due 2022 to C/RR4 from CCC/RR4. The agency also gave Genneia’s planned senior secured notes due 2027 expected CCC/RR4 ratings.
“These downgrades follow an announcement by Genneia that it is launching an offer to exchange its 8¾% $500 million notes due 2022 and $53.286 million private notes due 2022 with amortizing 8¾% senior secured notes due 2027. Per Fitch criteria, the exchange offer is considered a distressed debt exchange (DDE), which is necessary in order to comply with central bank restrictions on dollar-debt refinancings,” the agency said in a press release.
The planned notes will carry the same 8¾% interest rate and have equal semi-annual amortizations beginning in March 2023 with maturity in 2027. The notes will be secured by revenues from the Madryn I & II wind farms, which total 222MW and have net annual sales of $90 million with long-term power purchase agreements.
Fitch said if the DDE is completed, it will downgrade Genneia again to RD and then re-rate the company.
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