According to StreetInsider.com, Soleil Securities downgraded BioFuel Energy (BIOF) to Sell citing the company’s need for additional debt in order to cover hedging losses and construction costs.

They also reiterated their sell rating on Pacific Ethanol (PEIX) and lowered the price target to 1.50 from 2, saying “the outlook remains weak given the forecasted ehtanol environment and their debt heavy balance sheet.  As we are modeling negative margins going forward, we do not anticipate any significant improvement in their financials.”