S&P revises Clearway Energy view to negative

S&P said it revised the outlook on Clearway Energy Inc. to negative from stable.

“The negative outlook on CWEN incorporates our view that credit metrics will remain pressured, particularly while PG&E bankruptcy proceedings continue. We expect leverage to be over 5.5x during the bankruptcy but moderate to the 5x range when PG&E emerges. We could lower the rating if the PG&E bankruptcy isn't resolved or credit metrics deteriorate such that debt to EBITDA remains above 5x over the next few years while FFO to debt approaches 12%,” said S&P in a press release.

The agency affirmed the BB issuer credit and issue-level ratings on Clearway and its senior unsecured notes. The 3 recovery rating (estimated recovery: 65%) is unchanged.

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