S&P lowers Kestrel

S&P said it downgraded Kestrel Acquisition LLC’s senior secured debt rating to B+ from BB- based on lower debt service coverage ratios. The 2 recovery rating is unchanged.

“We lowered our issue-level rating on Kestrel by one notch to B+ after poor financial performance in 2019 prevented the project from sweeping any cash. Additionally, we lowered our expectations for future cash flows based on the PJM power price forward curve. We also view the project's financial policy as aggressive, given the upsizing of the term loan that was used to pay a distribution in December 2018 before the project had repaid any debt,” said S&P in a press release.

The outlook is stable.

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