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Moody's: DTE outlook stable
Moody's Investors Service said it revised DTE Energy Center, LLC's outlook to stable from negative and affirmed the Ba3 rating on its senior secured bonds.
The outlook revision and affirmation follow the assignment of the eighth and final utility service agreement to the new Chrysler Group LLC by the former offtaker, Utility Assets LLC, a wholly owned subsidiary of OldCarCo, the new name for the former Chrysler LLC, which remains in bankruptcy. This eighth agreement relates to the Sterling Heights Assembly Plant and was initially expected to be terminated upon the planned shutdown of the plant in 2011, at which time a termination payment would have been payable.
The agency said the negative outlook was primarily related to the expectation that OldCarCo would be unable to make the termination payment due to its bankruptcy coupled with uncertainty regarding Daimler North America Holding Corp.'s willingness to fulfill its obligations under its guarantee of Utility Assets and Chrysler's respective obligations under the agreements. The plant has since been purchased by Chrysler, so if and when it is shut down, any termination payments will now be an obligation of Chrysler.
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