We recently published 10 Small Stocks with Mighty Gains. New Fortress Energy Inc. is one of the top-performing stocks on Wednesday.
New Fortress grew its share prices by 8.93 percent on Wednesday to close at $1.22 apiece after receiving a credit rating upgrade from S&P Global.
In a report on Tuesday, S&P Global said it raised its credit rating for New Fortress Energy Inc. to “CCC-“ from Selective Default (SD) previously.
A CCC credit rating is one of the lowest credit ratings from S&P Global, suggesting that a company is currently vulnerable and dependent on favorable business, financial, and economic conditions to meet financial commitments.
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In the event of adverse business, financial, or economic conditions, a CCC-graded borrower is not likely to have the capacity to meet its financial commitments on the obligation.
However, the CCC grade was a significant upgrade from New Fortress Energy Inc.’s previous rating of SD, which classifies a borrower selectively defaulted on a specific issue or class of obligations, but it will continue to meet its payment obligations on other issues or classes of obligations in a timely manner.
A rating on a borrower is lowered to SD if the company is conducting a distressed debt restructuring.
In addition to the credit rating, S&P Global also lowered its issue-level rating on New Fortress Energy Inc.’s senior secured term loan B to “CCC-“ from “CCC” previously; as well as its 2026 and 2029 notes to “CC” from “CCC-.”
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This article is originally published at Insider Monkey.
