NEW YORK (TheStreet) -- TerraForm Power (TERP) - Get Report stock is down by 4.72% to $8.07 in midday trading on Tuesday, after TerraForm Global (GLBL) said parent company SunEdison (SUNE) could file for bankruptcy protection.
In an SEC filing on Tuesday, SunEdison yieldco TerraForm Global said there was "substantial risk that SunEdison will soon seek bankruptcy protection" due to the company's liquidity issues.
TerraForm Power and TerraForm Global, which both serve as SunEdison's yieldcos, are unlikely to also file for bankruptcy protection, Raymond James analyst Pavel Molchanov told Reuters.
"However, there is a close historical relationship between the parent company and these yieldcos and therefore some dislocation in the event of parent bankruptcy should be expected," Molchanov said, according to Reuters.
Based in Bethesda, TerraForm Power operates clean power generation assets.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "sell" with a ratings score of D. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally high debt management risk.
You can view the full analysis from the report here: TERP