Moody's rates AES notes Ba3, loan Ba1

Moody's Investors Service said it assigned a Ba3 rating to the AES Corp.'s planned $500 million senior unsecured note offering, proceeds from which will be used to refinance upcoming debt maturities.

Concurrent with this assignment, Moody's affirmed the Ba1 rating on AES' existing senior secured revolver and assigned a Ba1 to the amended senior secured term loan, affirmed the corporate family rating, senior unsecured debt rating at Ba3, probability of default rating at Ba3-PD and the B2 subordinated debt rating.

The SGL-2 speculative grade liquidity rating is unchanged.

The outlook is stable.

Moody's said the rating takes into consideration headwinds the company faces in restructuring its Ohio-based utility business offset in part by a reduction in AES' recourse debt.

The acquisition of DPL, Inc., completed in-late 2011, the parent company of Dayton Power and Light Co., was expected to improve AES' consolidated financial performance and reduce its overall business risk profile.

The agency said that while certain aspects of overall business risk has occurred, the financial contribution anticipated from the acquisition has not materialized as the business has encountered significant headwinds.

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