Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers H > Headlines for Homer City Generation, LP > News item |
Moody’s raises Homer City to B3
Moody's Investors Service said it upgraded Homer City Generation LP's senior secured rating to B3 from Caa1.
The outlook is stable.
Moody’s said the upgrade reflects Homer City's strong cash flow earned during the exceptionally cold 2013/2014 winter period that resulted in improved balance sheet liquidity even when considering 2014 summer earnings that were less than half of summer 2013. For example, Homer City's EBITDA for the first three months of 2014 exceeded its full year 2013 EBITDA by more than 50%.
The agency estimates that total cash after payment of the Oct. 1 scheduled debt service payment was about $108 million at Oct. 1, 2014 as compared to $72 million at the same time in 2013.
The much stronger than expected liquidity provides greater financial resiliency against ongoing market risks and rapidly rising debt service through at least the expected completion of the flue gas desulfurization scrubbers scheduled for March 17, 2016, 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.