Moody's downgrades LMBE-MC

Moody's Investors Service said it lowered LMBE-MC Holdco II, LLC's senior secured credit facilities to B1 from Ba3 and revised the outlook to negative from stable.

“Today's rating action reflects the deterioration in the credit quality of Talen Energy Supply, LLC (Talen: Ca corporate family rating), the indirect owner of LMBE-MC, and considers the uncertainty that Talen's stressed financial profile may have on existing affiliate agreements from an operational and financial perspective should Talen seek to restructure.

“That said, the B1 rating takes into consideration the ring-fencing provisions incorporated into LMBE-MC's financing structure that, combined with its sound stand-alone financial performance, helps to mitigate the risk of LMBE-MC being consolidated into a Talen restructuring,” Moody’s said in a press release.

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