In a research report released today, Oppenheimer analyst Colin Rusch downgraded shares of SunEdison Inc (NYSE :SUNE) from Outperform to Perform rating, following the news that the company has delayed filing of its financial statements, mainly due to an internal investigation into the solar company’s financial position. SunEdison shares reacted to the news, falling 19% at the time of writing.

Rusch commented, “We continue to see a robust market for renewable energy assets with at least two dozen active buyers and believe SUNE’s portfolio contains significant value. However, with an unclear liquidity picture and questions about financial controls, we step to the sidelines, as we note that either issue could severely limit SUNE’s ability to raise capital–which is core to its business model. We note that we are at risk of bottom-ticking the stock with this downgrade, but believe the integrity of financial reporting and controls is foundational for this business. Such questions present too much risk for us to remain constructive on shares.”

“We have already seen evidence of SUNE’s challenged position with its recent second lien refinancing and missed payments to HECO. We believe that until the reporting issues are resolved, counterparties may be less willing to enter into long-term agreements,” the analyst said.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Colin Rusch has a total average return of 11.7% and a 48.0% success rate. Rusch has a -84.1% average return when recommending SUNE, and is ranked #229 out of 3678 analysts.