Fitch: Envision Energy watch unchanged

Fitch Ratings said that Envision Energy International Ltd.’s (BBB-) revised plan to take an equity stake in Automotive Energy Supply Corp. will not affect the rating watch negative that was placed on Aug. 13.

Envision had previously announced plans to disburse loans of about $180 million to affiliated companies to finance the acquisition of Automotive Energy Supply, Nissan Motor Co., Ltd.'s (BBB+/stable) battery business.

Under the latest plan, the company is instead planning to invest about $180 million for a stake in Automotive Energy Supply.

Fitch said it had placed Envision Energy on rating watch negative to reflect expectations of a deterioration in leverage in the medium term based on the planned disbursement of the loans.

The loans, if disbursed, would raise the company's 2018 FFO-adjusted net leverage to 2.3x and Fitch said it expects this metric to remain above 1.5x, the level at which it would consider negative rating action, if the new plan is carried out.

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