Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers L > Headlines for LSP Energy LP > News item |
Moody's downgrades LSP bonds
Moody's Investors Service said it downgraded LSP Energy LP's senior secured bonds to Caa1 from B3.
The outlook remains negative.
The agency said the downgrade reflects the project's $3.6 million draw on its debt service reserve, which was needed to make its January debt service payment. The draw follows a $4 million draw made in July 2009 and a $5.2 million draw in January 2009. According to Moody's, approximately $3.7 million remains in the debt service reserve, which is equivalent to about 1.4 months of debt service.
The rating action also considers the project's 2010 budget, which the agency said forecasts insufficient cash flow to fully meet debt service.
The negative outlook reflects the significant potential for default within the next year and uncertain recovery prospects, Moody's said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.