Moody's cuts Chief Power loan

Moody's Investors Service said it downgraded Chief Power Finance, LLC's $318.5 million senior secured term loan due in December to Ca from Caa1. Chief's outlook remains negative.

“The downgrade to Ca from Caa1 reflects the higher default probability owing to low power prices in PJM Interconnection, LLC (PJM, Aa2 stable) during the critical winter months weakening anticipated cash flow generation and liquidity, and raising the prospect of a debt restructuring as the capital structure remains unsustainable in this power market,” the agency said in a press release.

© 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.