S&P rates Star West loans B+

Standard & Poor’s said it assigned a preliminary B+ debt issue rating to Star West Generation LLC’s proposed $450 million senior secured term loan due 2020 and $100 million senior secured revolving credit facility due 2020.

The agency also said it assigned a preliminary 2 recovery rating to the credit facilities, which indicate 70% to 90% expected default recovery.

The outlook is stable.

Distributions to Star West are made only after project-level operating and maintenance expenses, debt service and reserve filling are covered, S&P said.

The ratings reflect a less diverse portfolio of assets and a lower minimum debt service coverage ratio during the refinancing period, the agency said.

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