Moody's downgrades Senvion

Moody's Investors Service said it downgraded the corporate family rating of Senvion SA to Ca from Caa3.

Moody's also said it revised the group's probability of default rating to Ca-PD/LD (limited default) from Ca-PD.

Moody's also downgraded the rating on the €400 million senior secured notes due 2022 issued by Senvion Holding GmbH to C from Ca.

The outlook remains negative.

Moody's said it views the non-payment of interest on the senior secured notes due May 2 following the grace period as a default.

The limited default designation will remain until the company resolves the missed payment, the agency said.

The company, which filed for self-administration insolvency proceedings in April, continues its business operations, supported by a €100 million debtor-in-possession (DIP) facility signed with its lenders and main bond holders.

This allows the group to proceed with the comprehensive restructuring process initiated at the beginning of this year, Moody's said.

The ratings are constrained by the unsustainable capital structure and declining profitability, driven by the structurally low profitability of the consolidating and intensely competitive wind turbine industry, the agency said.

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