Moody's: Dynegy liquidity rating SGL-2

Moody's Investors Service said it changed Dynegy's speculative grade liquidity rating to SGL-2 from SGL-1.

Moody's said the change primarily reflects: projected operating cash flow over the next 12 months that is expected to be weak relative to operating cash flow during the prior 12 months and relative to scheduled debt maturities, debt amortization and capital expenditures, the scheduled maturity of the company's $1.1 billion secured revolver within the next 12 months, which represents Dynegy's primary source of liquidity, and the company's plans to partially offset the expected shortfall between sources and uses of cash over the next 12 months with asset sale proceeds.

The SGL-2 liquidity rating continues to reflect Dynegy's substantial, albeit lower, cash balances and available committed credit capacity relative to expected uses of cash over the coming four quarters.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.