Microsoft shares jump after fourth-quarter earnings beat on AI-fueled cloud growth
Investing.com -- Moody’s Ratings downgraded Sunnova Energy International Inc (OTC:NOVAQ).’s probability of default rating (PDR) to D-PD from Ca-PD/LD after the company filed for Chapter 11 bankruptcy protection.
The rating agency removed the LD designation from Sunnova’s PD while affirming the company’s corporate family rating (CFR) of Ca and Sunnova Energy Corporation’s senior unsecured rating of Ca. The speculative grade liquidity rating of SGL-4 remains unchanged.
Moody’s plans to withdraw all ratings of Sunnova due to the bankruptcy filing, according to its announcement on Thursday.
The rating action reflects governance considerations related to Sunnova’s high debt leverage, negative cash flow generation, and significantly constrained liquidity sources, which contributed to the bankruptcy filing.
Sunnova filed for Chapter 11 protection on June 8, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas. The filing included Sunnova, Sunnova Energy Corporation, and Sunnova Intermediate Holdings, LLC.
The company’s securitization vehicles containing operating projects were not included in the filing. However, the bankruptcy filing triggered an event of default that automatically accelerates obligations under warehouse facilities, including Sunnova EZ-Own Portfolio, LLC and Sunnova TEP Holdings, LLC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.