S&P upgrades Eastern Power

S&P said it raised the rating on Eastern Power LLC's senior secured facilities to BB from BB-, reflecting higher than expected debt paydown and a strong cash flow profile through refinancing.

The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrade stems from Eastern's relative outperformance compared to expectations and peers, S&P said.

The agency also said it believes the company will continue to voluntarily prepay principal on its term loan, as it has consistently done the past few years.

The stable outlook reflects Eastern Power's reliance on predictable capacity payments for most of its cash flow over the next few years and its sound operational performance, S&P said.

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