S&P rates Edison Mission notes BB-, loan BB+

Standard & Poor's said it assigned its BB- rating to the proposed $2.7 billion senior notes at Edison Mission Energy.

The agency said it also assigned its BB+ rating and 1 recovery rating, to the proposed $500 million secured bank revolver at subsidiary Midwest Generation LLC maturing 2013, indicating high expectation of full recovery of principal in the event of a payment default.

At the same time, S&P said it raised its rating to BB from BB- on Midwest Generation's $333.5 million pass-through certificates series A and $813.5 million pass-through certificates series B due and assigned a 1 recovery rating to the certificates.

The raised rating reflects a reassessment of the recovery potential for the certificates given their collateral in the Powerton Units 5 and 6 and the Joliet Station Units 7 and 8, the agency added, noting that the BB- corporate credit rating of Edison Mission and Midwest Generation reflects the credit quality of the distributable cash flow from a portfolio of generating assets.

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