S&P lowers LSP Batesville

Standard & Poor's said it lowered the rating on LSP Batesville Funding Corp.'s $150 million senior secured bonds due 2014 and $176 million senior secured bonds due 2025 to D from CC.

The co-borrower to the debt is LSP Energy LP.

The recovery rating is 4, indicating 30% to 50% expected recovery in default.

The downgrade follows the project's failure to make its Jan. 17 debt service payment of about $16.3 million on its senior secure bonds, S&P said.

The project liquidity has been depleted and the possibility of a substantial equity infusion from sponsors is considered to be remote based on the project's underlying economics and historical operational difficulties, the agency said.

Based on these factors, S&P said it concluded that payment will not be made within the applicable cure period of five days.

© 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.