S&P assigns B+ to Tenaska notes

Standard & Poor's said it assigned its preliminary B+ rating to Tenaska Alabama Partners LP's proposed $359.4 million senior secured bonds due 2021.

The outlook is stable.

S&P added that the rating reflects several risks, including project viability that requires Tenaska to meet minimum availability performance requirements under the 25-year fuel conversion services agreement with Williams Power, the off-taker is an unrated subsidiary of Williams, a below investment-grade company, and that the agency does not expect the company to meet its debt service obligations as a merchant facility.

The agency said that strengths include that the project is fully contracted and there is no merchant risk in the project structure as well as the fully covered fixed costs and debt service.

© 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.