Moody’s ups EnergySolutions, rates facilities

Moody's Investors Service said it upgraded EnergySolutions, LLC's corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD and existing senior secured first-lien revolving credit facility and term loan ratings to B2 from B3.

At the same time, the agency assigned B2 ratings to the company's proposed senior secured first-lien revolving credit facility and proposed senior secured first-lien term loan.

Additionally, Moody's withdrew the SGL-3 speculative grade liquidity rating.

The outlook is stable.

“The upgrade of the CFR to B2 acknowledges EnergySolutions' recent progress and improving prospects in securing additional decontamination and decommissioning (D&D) project work to supplement the steady operational waste management (OWM) revenues generated largely through life-of-plant contracts with major utilities,” the agency said in a news release.

Moody’s said the rating assignments follow the company's plan to refinance its existing credit facility with an upsized revolving credit facility ($150 million from $125 million) and term loan ($575 million from about $460 million) with the additional term loan proceeds used to pay a dividend to EnergySolutions' equity sponsor, Energy Capital Partners (ECP).

The agency expects to withdraw the B2 senior secured ratings on EnergySolutions' existing revolver and term loan upon closing of this proposed transaction.

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