S&P rates Talen Energy loan BB-

S&P said it assigned a BB- rating to LMBE-MC HoldCo II LLC's $450 million senior secured term loan B and $25 million senior secured revolving credit facility.

The recovery rating is 1, indicating 90% to 100% expected default recovery.

The outlook is stable, reflecting an expectation for a minimum debt service coverage ratio of about 1.53x in 2020.

LMBE-MC is a wholly owned project-financed subsidiary of Talen Energy Supply LLC.

Talen Energy announced its intention to project finance its Lower Mount Bethel and Martins Creek gas fired generating assets in order to use proceeds to pay corporate maturities, S&P explained.

The rating and outlook would be affected by diminished market conditions, commodity prices and weaker demand growth, S&P said.

The rating also would consider any secular improvement in the power market, the agency 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.