S&P rates Sapphire loan BB

Standard & Poor's said it assigned its BB long-term rating to Sapphire Power Finance LLC's $185 million senior-secured term loan due in October 2018 and $25 million senior-secured revolving credit facility due in October 2016.

The outlook is stable.

The recovery rating is 1, indicating a very high probability of recovery.

"The BB rating reflects our view of the limited geographical and technological diversification of the assets, exposure to merchant capacity markets starting in June 2015, and the assumption of all operating risks," said S&P credit analyst Grace Drinker in a news release. "However, the rating is supported by debt service coverage levels that remain well above 1.0x in various scenarios and that most of the plants are located in high-priced segments of the PJM Independent System Operator capacity and energy markets."

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