Fitch Ratings has withdrawn Enviva Inc.'s Long-Term Issuer Default Rating (IDR) of 'D'. Fitch has also withdrawn the long-term 'C'/'RR6' rating for the senior unsecured notes.

The ratings were withdrawn because Enviva entered Chapter 11 of the U.S. Bankruptcy Code on March 12, 2024.

Key Rating Drivers

Not applicable as the ratings have been withdrawn.

ESG - Governance and Management Strategy: Fitch has maintained Enviva's ESG relevance scores following a material and significant reduction in FY23 earnings that has led to ongoing financial distress and ultimately bankruptcy.

Derivation Summary

Not applicable as the ratings have been withdrawn.

Key Assumptions

Not applicable as the ratings have been withdrawn.

Recovery Analysis

Not applicable as the ratings have been withdrawn.

RATING SENSITIVITIES

Rating sensitivities are no longer applicable given the bankruptcy filing.

Liquidity and Debt Structure

Not applicable given the bankruptcy filing.

Issuer Profile

Enviva Inc. is the world's largest supplier of utility-grade wood pellets to major power generators by production capacity. The company procures wood fiber and processes it into utility-grade wood pellets, which are then transported to their customers overseas through vessels.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Enviva Inc. has an ESG Relevance Score of '5' for both Governance and Management Strategy due to poor execution of corporate strategy which has led to a change in management and resulted in a significant and material decline in earnings and cash flows relative to prior expectations, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in a series of ongoing rating downgrades and ultimately bankruptcy.

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

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