Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

MEMC Falls After Moody’s Downgrade Limits Access to Credit

Don't Miss Out —
Follow us on:

June 8 (Bloomberg) -- MEMC Electronic Materials Inc., the second-largest U.S. polysilicon maker, fell after a ratings downgrade “limited” its access to a credit line.

MEMC dropped 2.3 percent to $1.68 at the close in New York. The shares have declined 57 percent this year.

Moody’s Investors Service downgraded MEMC’s corporate family rating to B3 from B2 and its 2019 notes to Caa1 from B3 yesterday, while raising the company’s speculative grade liquidity rating to SGL-3 from SGL-4.

“As a result of the downgrade, we will be limited from making any additional borrowings under our North American non-recourse revolving construction facility,” Brian Wuebbels, the St. Peters, Missouri-based company’s chief financial officer, said yesterday in a statement.

MEMC said the downgrade won’t require it to accelerate repayment of about $110 million outstanding on the construction facility.

The company also may see a $15 million to $20 million reduction in its second-quarter cash balance, Wuebbels said. “We are comfortable with the company’s cash and liquidity position.”

The downgrade “reflects the financial distress in MEMC’s solar operations, which we expect will continue to burn cash for the near term,” Terry Dennehy, a Moody’s senior analyst, said in a statement.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.