S&P lifts some KCP&L notes

S&P said it assigned its A senior secured rating and 1+ recovery rating to Kansas City Power & Light Co.'s (KCP&L) $1.9 billion senior unsecured notes following the company's announcement that it has secured all of its outstanding unsecured notes with the lien of KCP&L's general mortgage indenture.

At the same time, S&P raised the ratings on approximately $1.9 billion of existing senior bonds of KCP&L to A from A- to reflect the addition of this lien, making these bonds secured and pari passu with the company's existing general mortgage bonds. In addition, the agency assigned a 1+ recovery rating to these bonds.

“Our A issue-level rating is based on our 1+ recovery rating on the bonds, reflecting our highest expectation for full recovery of principal (100%) in a default scenario. KCP&L's bonds have collateral coverage of more than 1.5x, resulting in a recovery rating of 1+,” S&P said in a news release.

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