Fitch cuts Lucid Energy

Fitch Ratings said it downgraded Lucid Energy Group II Borrower, LLC’s long-term issuer default rating to B- from B+ and senior secured rating to B-/RR4 from BB-/RR3. The outlook remains negative.

“The downgrade of the IDR reflects Lucid’s elevated leverage (total adjusted debt/adjusted EBITDAR) in the near term. Fitch has previously stated that leverage in 2020 above 6.5x is a negative rating sensitivity. Fitch now projects Lucid’s to operate with leverage above 8.5x for both 2020 and 2021,” the agency said in a press release.

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