The Downer EDI Ltd (ASX: DOW) share price is down 7.5% today after analysts at Credit Suisse reportedly downgraded their view on the engineering group to an "underperform" rating.
Yesterday, Downer gave a shock warning that its joint engineering partner (named Senvion) for the Murra Murra wind farm project had filed "self-administration" (i.e. bankruptcy) proceedings in Germany.
Downer also warned that this could have consequential financial impacts on its own business and the project as among other things, "Downer holds a substantial bank guarantee from Senvion".
This kind of announcement is always a risk for share market investors everywhere, but looks more of a short-term hiccup for Downer, rather than a structural problem.
However, Downer did warn that it will be assessing whether the issue will have any impact on its existing FY 2019 financial guidance.
