S&P cuts CPV secured rating

S&P said it lowered CPV Shore Holdings, LLC’s secured debt ratings, including its term loan and revolver, to B+ from BB- and revised the recovery rating to 2 from 1, indicating the expectation for substantial (70%-90%; rounded estimate: 70%) recovery in a default scenario.

“Financial underperformance along with lower projected capacity prices in the PJM Interconnection Eastern Mid-Atlantic Area Council zone (PJM-Emaac) are leading to a higher projected term loan B (TLB) balance at maturity and lower forecast debt service coverage ratio (DSCR) for CPV Shore Holdings LLC (CPV). We now project a minimum DSCR of about 1.2x in the refinancing period, which compares with projects in the B category,” the agency said in a press release.

Previously, S&P said it now estimates the amount of debt outstanding at maturity to be $330 million from a previous projection of $260 million.

The outlook is negative.

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