Moody's trims Oregon Clean Energy

Moody's Investors Service said it downgraded Oregon Clean Energy, LLC's senior secured credit facilities to B1 from Ba3, consisting of a $499 million term loan due March 2026 and a $50 million working capital facility due March 2024.

The downgrade reflects the weaker-than-previously-expected FY 2020 financial performance for the second year in a row, coupled with last week's 2022/2023 PJM capacity auction results that saw capacity prices in the ATSI (American Transmission Systems, Inc.) region clear at $50/MW-day, leading to weaker credit metrics anticipated in the future and increased refinancing risk at maturity, Moody’s said.

“The ATSI region capacity auction prices converged to RTO prices earlier than previously anticipated with the most recent 2022-2023 PJM auction resulting in a 71% drop in price relative to the 2021-2022 results, or $20 million in lower capacity revenues in FY 2022 than Moody's prior forecast,” the agency said in a press release.

The outlook remains negative.

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