S&P lifts TPF Generation recovery to 3

Standard & Poor's said it revised the recovery rating on TPF Generation Holdings LLC's $495 million second-lien term loan to 3 from 4.

The 3 rating indicates 50% to 70% expected recovery in a default.

The agency also said it affirmed the B rating on its second-lien securities, along with the BB rating on its first-lien $850 million senior secured term loan and related senior securities and left the 1 recovery rating unchanged.

The outlook is negative.

The rise in the recovery rating follows a revision of the assumptions regarding asset valuations in the PJM Interconnection region, where two of the portfolio's assets are located, S&P said.

The ratings also consider the project's refinancing risk, the agency said. The amount of debt the project will have to refinance at the end of 2013 will vary depending on whether it can secure resource adequacy payments at the High Desert plant and how much it can earn in merchant energy markets, S&P said.

© 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.