Moody's cuts Granite Generation

Moody's Investors Service said it downgraded the ratings of Granite Generation, LLC, including its corporate family rating to B1 from Ba3, its probability of default rating to B1-PD from Ba3-PD and the rating of its senior secured credit facilities to B1 from Ba3.

Granite's credit facilities are comprised of a term loan due November 2026 and a $100 million revolver due November 2024.

"The downgrade of Granite's ratings is triggered by the recent June 2022 PJM auction that resulted in lower capacity prices for the 2023/24 planning year. This comes on the heels of a more immediate reduction in capacity prices resulting from the last auction for the 2022/23 planning period," said Nati Martel, a Moody’s vice president and senior analyst, in a press release.

"We expect that these lower capacity prices will contribute to a gradual deterioration in Granite's financial performance, particularly in 2024, and a higher than initially anticipated reliance on revenues related to energy margins," Martel added.

The outlook remains negative.

© 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.