Moody’s downgrades West Deptford

Moody’s Investors Service said it lowered West Deptford Energy Holdings, LLC’s senior secured credit facilities to B1 from Ba3. The debt facilities consist of a $445 million seven-year senior secured term loan due 2026 and a $55 million five-year senior secured revolving credit facility due 2024. The agency also changed the outlook to negative from stable.

The downgrade reflects West Deptford’s weak financial performance in 2020, the expectation for performance to improve to B level metrics in 2021 and increased merchant exposure due to the expiration of the revenue put in December 2020, the agency said.

Moody’s also noted West Deptford’s increasing refinancing risk.

The outlook reflects an expectation for energy margins to remain weak in 2021, given increased merchant risk and ongoing exposure to the regional greenhouse gas initiative, the agency said.

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