Moody’s ups Terraform Power, debt

Moody's Investors Service said it upgraded Terraform Power Operating LLC's (TPO) corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD and senior unsecured rating to B1 from B2.

The Ba1 senior secured rating was affirmed and the speculative grade liquidity rating is unchanged at SGL-2.

The outlook is stable.

Moody’s said the action was prompted by the completion of Terraform Power’s acquisition of 95% of the shares of Saeta Yield, SA (unrated), and the expectation that the remaining 5% of the shares will be acquired by July 3.

"The Saeta transaction increases TERP's scale and geographic diversity," Moody's vice president, senior analyst Natividad Martel said in a news release.

"We also note that TPO used the $650 million proceeds from its parent company's recent private equity placement to fund nearly 60% of the $1.12 billion purchase price."

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