S&P rates Sierra Pacific Power

Standard & Poor's said it assigned its BB rating to the proposed $50 million synthetic bank credit facility at Sierra Pacific Power Co. (B+/negative/--). The facility will be secured by Sierra Pacific's general and refunding mortgage bonds and hence carries the same rating as the general and refunding bonds.

S&P also assigned its 1 recovery rating for the bank loan, denoting high expectation of full recovery of principal.

The agency rates Sierra Pacific Power Co.'s corporate credit B+, senior secured debt BB, senior unsecured debt B-, and preferred stock CCC+.

S&P said ratings on Sierra Pacific Power reflect the weak consolidated business and financial profiles of Sierra Pacific Resources and its utility subsidiaries NPC and Sierra Pacific Power. A troubled regulatory climate in Nevada and a short capacity position that creates exposure to the volatile wholesale power markets are the principal sources of business risk for Sierra Pacific Resources.

Also, management has been held responsible for imprudent power-procurement decisions made during the western wholesale power markets crisis in 2000 and 2001, resulting in a significant revision in power-procurement policies and personnel over the past two years.

© 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.