Moody's downgrades Senvion

Moody's Investors Service said it downgraded Senvion SA's corporate family rating to Caa3 from Caa1 and probability of default rating to Ca-PD from Caa1-PD.

The agency also downgraded the rating on the senior secured notes issued by Senvion Holding GmbH to Ca from Caa2.

The outlook remains negative.

The downgrades were triggered by news that the company's discussions with lenders and major bond holders have not yet led to an agreement on future financing, Moody's explained.

The agency also said it has increasing concerns on the sustainability of the current debt structure.

Moody's said it understands that there has not been any missed payments of principal or interest at this point.

The company's ratings are constrained by its leveraged capital structure and declining profitability, the agency said.

The ratings also reflect its geographical concentration with Senvion's historical key markets of Germany, France and the United Kingdom still representing 55% of new installations and 46% of revenues in 2017, Moody's said.

The ratings are supported the company's size and market positions, albeit significantly smaller than the industry leaders, the agency said.

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