S&P puts Solar Star on watch

The agency said it placed the BBB rating on Solar Star Funding LLC's notes on CreditWatch with negative implications following the downgrade of revenue counterparty Southern California Edison Co., whose future credit trajectory is now the primary risk for the rating.

The negative watch placement mirrors the CreditWatch on Southern California, whose listing reflects elevated credit risks because of its susceptibility to frequent and devastating wildfires, S&P said.

The ratings on watch include the BBB rating on Solar Star's $1 billion senior secured notes due 2035 and $325 million on its notes due 2035.

Southern California is the sole revenue counterparty to Solar Star, purchasing all of its electricity from the solar facility under long-term power purchase agreements, S&P said.

The CreditWatch listing mirrors the listing on Southern California Edison, which provides the project with all its revenues for the power it produces, S&P said.

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