Moody’s trims Kestrel Acquisition

Moody’s Investors Service said it downgraded the rating assigned to Kestrel Acquisition, LLC’s senior secured credit facilities to B1 from Ba3 following lower-than-expected financial performance. The credit facilities consist of a $446 million term loan B due 2025 and a $40 million revolving credit facility due 2023.

“The one notch downgrade reflects poor financial performance primarily driven by weak power market fundamentals, and the lack of a multi-year hedging strategy which makes the project more affected by market dynamics. As such, Kestrel’s cash flow generation and related key financial metrics over the last twelve months have been significantly lower than anticipated and expected debt reduction incorporated into the former rating has not materialized, resulting in higher refinancing risk,” said Moody’s in a press release.

The outlook is negative.

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