S&P trims Green Country

S&P said it lowered Green Country Energy LLC’s senior secured notes to CCC from CCC+. The 1 recovery rating (90%-100%; rounded estimate: 95%) is unchanged, indicating an expectation for very high recovery in default.

“Our current projections continues to project that Green Country Energy LLC (GCE) will not have enough funds to meet its 2022 mandatory redemption payment, unless the project resorts to external liquidity sources or signs a power contract that satisfies the conditions to cancel the early mandatory redemption,” S&P said in a press release.

“We note that the CCC rating for this project is driven more by its unsustainable financial commitments, than by the probability of default. This is because the parent has incentives to cover the shortfall rather than lose the asset to lenders over a relatively small sum. The sponsors are investing in maintenance in excess of what would be required to operate the plant to the maturity date,” the agency said.

The outlook is negative.

© 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.