DBRS eyes Kingston Solar negatively

DBRS said it placed Kingston Solar LP’s (ProjectCo) issuer rating and the ratings of its 3.571% series 1A-2016 senior secured notes and 3.571% series 1B-2016 senior secured notes under review with negative implications.

“ProjectCo has experienced a number of unplanned sitewide outages since 2019. The latest incident at the site, which occurred in December 2021 (the December Event), has the potential to cause the whole site to go off line until mid-February 2022 or beyond,” DBRS said in a press release.

Kingston expects the event to be covered by insurance. However, uncertainty remains regarding the insurance eligibility and timing of the insurance proceeds, but management has confirmed it will have sufficient cash available for its debt service payment due on Jan. 31, without using the debt service reserve account or any potential insurance proceeds, DBRS said.

The agency said the review will consider liquidity concerns, uncertainty over the insurance proceeds and when they will be received and the long-term effect on insurance premiums.

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