Emeria - comment

Fitch has maintained Emeria’s bond ratings at B and CCC for the senior secured and senior unsecured, respectively, but revised the outlook to negative. The negative outlook is due to the persistent high leverage and low interest coverage ratio. Fitch views Emeria’s liquidity as sufficient, including covering intra-year working capital swings.

This concurs with our view that if working capital were an issue, it would have become apparent by now.