TEXT-S&P summary: Infinis PLC

Wed Oct 17, 2012 6:02am EDT

Oct 17 -

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Summary analysis -- Infinis PLC ----------------------------------- 17-Oct-2012

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CREDIT RATING: B+/Stable/-- Country: United Kingdom

Primary SIC: Electric Services

Mult. CUSIP6: 45672A

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Credit Rating History:

Local currency Foreign currency

09-Dec-2009 B+/-- B+/--

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Issues:

Rating Rating Date

GBP275 mil 9.125% nts due 12/15/2014 B+ 09-Dec-2009

Rationale

The ratings on Infinis PLC (Infinis), the largest U.K. landfill gas (LFG)-to-electricity generator (265 megawatts of installed capacity) are constrained by our view of the "highly leveraged" financial risk profile of the consolidated group under ultimate parent company Infinis Holdings (the group; not rated). We base this view on what we consider to be meaningful refinancing risk for the group in December 2014, and the group's weak Standard & Poor's-adjusted cash flow debt coverage ratios. In addition, we see uncertainties as to the financial policies and strategy of the group's owner, private equity firm Terra Firma. We assess Infinis' business risk profile as "fair". A main constraint, in our view, is the increasing exposure of part of Infinis' revenues to volatile wholesale power prices, which depend on macroeconomic conditions and commodity prices. Moreover, Infinis' LFG assets are depleting, and there is some uncertainty about their residual economic life.

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