SunEdison Inc.'syieldco vehicles TerraForm PowerInc. and TerraFormGlobal Inc. are at the risk of a downgrade at Standard & Poor'sRatings Services which placed the B- corporate credit rating of both companieson CreditWatch negative April 7.
TerraFormPower Operating LLC's B- corporate credit and senior unsecured noterating has also been placed on CreditWatch negative and so has the B- rating ofTerraForm Global Operating LLC's senior unsecured notes and B+ rating of itsrevolving credit facility.
S&P said that TerraForm Power's to file annual 10-K statementwith the SEC was a concern since even "modest discrepancies in financialinformation could lead us to believe that the actual credit quality is lowerthan currently anticipated."
It also hinted at a possible default if the companycontinued to delay the filing, S&P said.
The ratings agency raised similar concern at TerraForm Global and added that itslawsuit againstparent SunEdison could have a negative impact on its credit quality.
Also concerning was the resignation of Brian Wuebbels as president, CEO andboard director of TerraForm Power and TerraForm Global late last month: justfour months after he assumed the position. "[T]his, in conjunction withthe reporting deficiencies, leads us to reassess the management and governancescore as weak," S&P said.
S&P Ratings andS&P Global Market Intelligence are owned by McGraw Hill Financial Inc.