S&P rates Longview Power credit facilities B+

Standard & Poor’s said it assigned its B+ debt issue rating on Longview Power LLC’s $300 million senior secured term loan due 2021 and $25 million senior secured revolving credit facility due 2020.

S&P also assigned a 2 recovery rating to the credit facilities, which indicates an expectation of “substantial” recovery (70% to 90%; in the lower half of the range) if a payment default occurs.

The outlook is stable.

“We base the stable outlook on our expectation that Longview will be able to complete its repair program in 2015 and return to operation. We also expect that cash flow will be fairly stable thereafter, based on our assumptions about future natural gas prices along with known capacity market revenues,” said S&P credit analyst Terry Pratt in a news release.

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