Moody's lowers LSP Energy

Moody's Investors Service said it downgraded LSP Energy LP's rating on its senior secured bonds to Caa3 from Caa2.

The outlook remains negative.

The downgrade reflects the project's payment default on Jan. 15, Moody's said, and the occurrence of an event of default under the bond indenture given the lapse of the 15-day grace period.

The event of default provides bondholders various remedies, including debt acceleration and bankruptcy is a distinct possibility, the agency said.

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