Moody’s might drop NRG Yield

Moody's Investors Service said it placed NRG Yield, Inc.'s (NYLD) ratings on review for downgrade, including its Ba1 corporate family rating and senior unsecured rating.

The speculative grade liquidity rating was lowered to SGL-2 from SGL-1.

"The review for downgraded is prompted by NYLD's lack of access to the equity markets due to the large, approximate 30% fall in its stock price in recent months" Moody’s vice president and senior credit officer Toby Shea said in a news release.

"The ongoing inability to access the equity market creates uncertainty regarding the company's financial strategy going forward."

The review also considers higher than expected cash flow volatility during the first half of 2015 driven by a major outage at one of its natural gas generation facilities and low wind resources in the first half of 2015, the agency said.

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