S&P rates Astoria loans B

Standard & Poor's said it assigned its B- corporate credit rating to Astoria Generating Co. Acquisitions LLC.

At the same time, the agency said it assigned a B issue rating to the proposed $455.1 million first-lien credit facility consisting of a $425 million term loan due October 2018 and a $30.1 million revolving facility due April 2017. The agency said it also assigned a recovery rating of 2, indicating a substantial recovery if a default occurs.

The outlook is positive.

At the same time, the agency said it withdrew its CCC/watch developing rating on Astoria's existing first- and second-lien credit facilities.

According to S&P, Astoria is refinancing its existing first-lien and second-lien credit facilities. The parent, US Power Generating Co., will make an equity contribution of $15 million and Astoria will use about $62.7 million of its available cash to fund the transaction. At close, Astoria will fund a six-month debt service reserve of about $18 million.

The agency said it rates Astoria based on the consolidated credit profile of the parent. The rating on Astoria reflects a vulnerable business risk profile and a highly leveraged financial risk profile.

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