S&P lifts ContourGlobal view to positive

S&P said it affirmed the BB- issuer credit rating on ContourGlobal plc and revised the outlook to positive from stable.

The agency also said it affirmed the BB issue-level rating on subsidiary ContourGlobal Power Holdings SA's €700 million senior secured notes.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The affirmation and outlook revision stem from the recent announcement of ContourGlobal's acquisition of a portfolio of five parabolic trough solar assets totaling 250 megawatts in Spain, S&P said.

In general, this is a credit-supportive acquisition, the agency said.

The issuer's leverage has declined, S&P said, and the addition of incremental and relatively stable EBITDA should support this initiative.

Additionally, this acquisition increases the scale and scope of the issuer with deconsolidated EBITDA increasing to about $230 million, the agency noted.

The positive outlook reflects an expectation that the company's portfolios of power generation assets will continue to operate under long-term contracts and generate fairly predictable cash flows to support its holding-company debt obligations, S&P added.

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