Moody’s: TPF Generation to negative

Moody's Investors Service said it changed the outlook at TPF Generation Holdings LLC to negative from stable reflecting the borrower's financial underperformance owing primarily to weak merchant energy margins and related cash flow.

Concurrent with this outlook change, the agency affirmed the B2 rating on TPF’s senior secured term loan B due in December 2017 (about $414 million currently outstanding) and the B1 rating on the $30 million senior secured working capital facility due in May 2017.

Moody’s said the outlook change reflects TPF’s exposure to cash flow volatility as a largely merchant generator, financial underperformance owing to low natural gas and power prices resulting in low energy margins, some asset concentration risk from its High Desert investment, weak financial metrics and higher refinancing risk.

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