Moody's rates Vistra Operations notes Ba3

Moody's Investors Service said it assigned a senior unsecured rating of Ba3 to Vistra Operations Co. LLC's about $800 million of senior unsecured notes due 2026.

These notes are pari passu with Vistra Energy Corp.'s senior unsecured notes, which are also rated Ba3. Vistra Energy is the former Dynegy Inc., Moody's noted.

The proceeds will be used to pay down some of the Vistra Energy's outstanding notes.

Vistra Operations is Vistra Energy's principal subsidiary and their credit profiles are nearly identical, the agency said.

Both Vistra Energy and Vistra Operations have positive outlooks.

The ratings reflect the company's relatively high business risk, the agency said, along with moderate and declining debt leverage.

Vistra Energy's business activities – merchant power generation and retail supply – have a high degree of volatility given their sensitivity to commodity price movements, Moody's said.

The high risk activities are tempered by the large scale and diversity of its generation assets, as well as the strong market position of its Texas retail operations, the agency said.

© 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.