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DBRS: Grand Renewable notes BBB
DBRS said it assigned a rating of BBB with a stable trend to both the 3.926% series 1A-2016 senior secured notes and the 3.926% series 1B-2016 senior secured notes issued by Grand Renewable Solar LP.
Both tranches are denominated in Canadian dollars and rank equally under the trust indenture, DBRS said.
The notes of $612.705 million in aggregate are to be fully amortized by the Jan. 31, 2035 maturity date, the agency said.
The proceeds will be used to repay existing bank debt, pay equity distributions and pay transaction fees and other expenses, DBRS said.
The special-purpose vehicle owns and operates a 100-megawatt alternating current ground-mounted solar photovoltaic generation facility in Ontario, the agency explained.
The rating is supported by the strength of its 20-year fixed-price contract with a highly rated offtaker, limited operating risk and enhanced project finance structure, DBRS said.
The rating is constrained by the long-term module degradation risk, exposure to long-term warranty providers with relatively weak credit quality and revenue depending on a variable energy resource and the expected performance ratio, the agency added.
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