Fitch lowers Sithe bonds

Fitch Ratings said it downgraded the rating of Sithe/Independence Funding Corp.'s secured bonds to BB- from BB and has removed them from Rating Watch Negative following the full review of the borrower's credit quality, including performance of the underlying power project and structural characteristics of the borrower.

Fitch said the rating was placed on Rating Watch Negative upon the announced acquisition by Dynegy Inc. (issuer default rating B-) of Sithe Energies.

Based on discussions with Dynegy management, Fitch said it believes that no material changes will be made to the project structure as a result of the acquisition and the corporate structure and governance will remain unchanged.

Fitch added it continues to view the project as a distinct entity, separate from the project's owner. However, in light of the Dynegy companies' dual role as owner and offtaker as well as their current credit ratings, Fitch said it views the project's credit profile as being closely analogous to a separately secured financing of Dynegy Inc.

© 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.