How Much Debt Does Your China Solar Stock Carry? Too Much... (STP) (LDK) (YGE)
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Solar stocks are lower on the session Monday following concerns that the firms might be over-leveraged, setting the stage for a potential collapse if the solar market continues to be stagnant.
Fears were stoked following the recent insolvency of a Suntech Power (NYSE: STP) unit last week, defaulting on $541 million in bond payments.
Of all Chinese copanies traded on U.S. market, four of the five with the highest annualized volatility are solar outfits, which include Suntech, LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL), and Yingli Green Energy (NYSE: YGE), according to Bloomberg-compiled data.
Annualized volatility on Suntech hit 143 last, while LDK reached 101, Trina reached 79, and Yingli was at 78 last year.
LDK has over $3.1 billion in debt and tapped Citigroup last December to help manage that level and potential renegotiate some of the rates and liabilities.
Trina last reported using $250 million in credit lines from China Development Bank and had $1.29 billion in other bank borrowings.
Yingli reported $603 million in debt payments due 2015, according to the latest filings.
Major solar firms have also reported losses for the last six-straight quarters.
Shares of all four solars are lower on the session.
Fears were stoked following the recent insolvency of a Suntech Power (NYSE: STP) unit last week, defaulting on $541 million in bond payments.
Of all Chinese copanies traded on U.S. market, four of the five with the highest annualized volatility are solar outfits, which include Suntech, LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL), and Yingli Green Energy (NYSE: YGE), according to Bloomberg-compiled data.
Annualized volatility on Suntech hit 143 last, while LDK reached 101, Trina reached 79, and Yingli was at 78 last year.
LDK has over $3.1 billion in debt and tapped Citigroup last December to help manage that level and potential renegotiate some of the rates and liabilities.
Trina last reported using $250 million in credit lines from China Development Bank and had $1.29 billion in other bank borrowings.
Yingli reported $603 million in debt payments due 2015, according to the latest filings.
Major solar firms have also reported losses for the last six-straight quarters.
Shares of all four solars are lower on the session.
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