S&P ups Mackinaw Power notes to A-

S&P said it corrected an analytical error and upgraded Mackinaw Power LLC’s senior secured notes due 2023 to A- from BBB+.

The upgrade reflects the removal of a rating cap linked to the depositary bank Deutsche Bank Trust Co. Americas, which S&P rates BBB+, the agency said.

“Previously, we had incorrectly determined that the accounts lacked characteristics that would have allowed us to treat the project funds held therein as sufficiently isolated from Dbtca’s insolvency risk,” S&P said in a press release.

“However, after reevaluating the transaction documents, we have concluded that Dbtca’s credit risk should not constrain our rating on Mackinaw Power because the project funds are held in trust accounts invested in securities,” the agency said.

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