S&P lowers Kestrel

S&P said it lowered Kestrel Acquisition LLC's senior secured debt rating to BB- from BB based on the lower debt service coverage ratios.

Thea agency also revised the recovery rating to 2 from 1, reflecting an expectation that there would be more debt outstanding in a default than previously anticipated.

The agency also revised the outlook to negative from stable.

The outlook revision considers a view that the project will need to accumulate cash in the revenue account over the next year and ultimately pay down significant debt in June 2020, S&P said.

Because of financial underperformance in the first half of 2019, Kestrel Acquisition, the owner of the Hunterstown Generating Station, did not pay down debt via the cash sweep mechanism in June as expected, the agency said.

S&P said it expects higher debt balances and lower expected cash flows in future periods.

The agency also said it revised the outlook to negative from stable.

The negative outlook also considers a view that the project will need to accumulate cash in the revenue account over the next year and ultimately pay down significant debt in June 2020, S&P said.

© 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.