| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Sithe/Independence Funding Corp. > News item |
Moody's downgrades Dynegy, rates loan B2
Moody's Investors Service said it lowered the ratings of Dynegy Holdings, Inc., including its probability of default rating and senior unsecured rating to Ca from Caa3, along with the ratings of various affiliates.
The outlook is negative.
The downgraded ratings of Dynegy Holdings included its senior unsecured regular bond/debenture to Ca (LGD 4, 52%) from Caa3 (LGD 4, 58%) and its multiple seniority shelf to provisional Ca and provisional C from provisional Caa3 and provisional Ca.
Dynegy Inc.'s multiple seniority shelf rating also was downgraded to provisional C from provisional Ca.
NGC Corp. Capital Trust I's preferred stock rating was downgraded to C (LGD 6, 91%) from Ca (LGD 6, 96%) and Roseton-Danskammer 2001's senior secured pass-through was downgraded to Ca (LGD 4, 52%) from Caa3 (LGD 4, 58%).
Dynegy Capital Trust II's preferred stock shelf also was downgraded to provisional C from provisional Ca and Dynegy Capital Trust III's preferred stock shelf to provisional C from provisional Ca.
The agency also said it assigned a provisional B2 rating (LGD 1, 5%) to Dynegy Power, LLC's $1.3 billion senior secured term loan.
Moody's also revised the outlook on Sithe/Independence Funding Corp. to stable from negative.
The downgrades reflect the increased likelihood of a distressed debt exchange transaction occurring within the next several months following news of the company's corporate reorganization, which seeks to modify asset ownership through the formation of several wholly-owned subsidiaries, Moody's said.
Separate financing arrangements being established at these subsidiaries will have annual limits placed on the amount of cash flow that can be paid to their indirect parent, which the agency said it believes raises default prospects for Dynegy's senior unsecured notes and the company's lease.
© 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.