Moody’s affirms NRG Yield

Moody's Investors Service said it affirmed NRG Yield, Inc.'s (NYLD) Ba2 corporate family rating and Ba2 senior unsecured rating following its announcement that Global Infrastructure Partners (GIP, unrated) will become the yieldco's new sponsor.

Global Infrastructure will acquire NRG Energy, Inc.'s (NRG, Ba3 positive) renewable energy portfolio, pipeline of development projects and its 46.3% economic interest in NRG Yield for $1.375 billion and the acquisition is expected to close in the second half of 2018.

The outlook is stable. The speculative grade liquidity rating is unchanged at SGL-2.

"We view GIP to be a strong sponsor that will not add incremental credit risk to NYLD compared to NRG,” Moody’s vice president, senior credit officer Toby Shea said in a news release/

"Under GIP's sponsorship, we expect NYLD to continue with its existing business strategy, governance structure and financial policy."

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