Moody’s upgrades Kiowa Power to Baa2

Moody's Investors Service said it upgraded the senior secured rating of Kiowa Power Partners, LLC to Baa2 from Baa3.

The outlook is stable.

Moody’s said the upgrade reflects the consistently strong financial and operating performance of Kiowa Power over an extended period of time. Kiowa Power has produced debt service coverage ratios (DSCRs) at around 1.4 times or higher over the last few years, and the agency expects this to continue.

“The rating action also considers the predictability and stability of the cash flows under a long-term Electricity Manufacturing Agreement (EMA) with Shell Energy North America (US), L.P. (SENA, A3 negative), where all of the fuel cost risk is borne by SENA,” Moody’s said.

The obligations of Shell Energy North America under the EMA are guaranteed by Shell Oil Co. (Aa3 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.