Moody's cuts Edison Mission

Moody's Investors Service said it downgraded the long-term ratings of Edison Mission Energy and its subsidiary, Midwest Generation Co., LLC, including Edison Mission's senior unsecured notes to B3 from B2 and the s corporate family rating and probability of default rating to B2 from B1.

Moody's also said it affirmed Edison Mission's speculative-grade liquidity rating at SGL-3.

This rating action concludes the review for possible downgrade that commenced on April 6, the agency said.

The outlook for both is negative.

The downgrade reflects its belief that Edison Mission's cash flow credit metrics will decline in future years due to continued high leverage and lower future sustainable cash flow generation due to weaker operating margins driven principally by low energy and capacity prices, according to the agency.

© 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.