S&P trims NRG Yield

S&P said it lowered its corporate credit rating on NRG Yield Inc. to BB from BB+. The outlook is stable.

At the same time, S&P lowered the rating on the $500 million senior unsecured notes due 2024 at subsidiary NRG Yield Operating LLC, to BB from BB+. The recovery rating on these notes remains 3, indicating an expectation for meaningful recovery (50% to 70%, at the higher end of the range) in the event of default.

S&P also assigned a BB rating, and 3 (50%-70%; higher end of the range) recovery rating to NRG Yield Operating LLC's proposed $350 million unsecured notes due 2026.

S&P has not rated $345 million and $288 million of convertible debt due 2019 and 2024, respectively.

“The rating change largely stems from a revision in the wind resource forecast across NYLD's wind assets. Because of that we have revised our FFO to debt and debt to EBITDA estimates to 15.5%-16% and 4.8-5x from 19.5% and 4.2x, respectively, through 2018,” said S&P credit analyst Aneesh Prabhu in a news release.

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