S&P lowers Longview Power

S&P said it downgraded Longview Power LLC’s secured debt to CC from CCC- and placed the ratings on CreditWatch with negative implications. The 4 recovery rating is unchanged, indicating an expectation for an average recovery in case of default (30%-50%; rounded estimate: 30%).

The downgrade is based on S&P’s view a default on the repayment of Longview's revolver, maturing April 13, is imminent. The agency assesses Longview's liquidity as very weak, suggesting that Longview will be unable to repay its revolver without breaching its minimum cash-on-hand covenant.

S&P sees resolving the CreditWatch within 30 days.

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