S&P rates EquiPower loan BB

Standard & Poor's said it assigned a BB rating and 1 recovery rating to EquiPower Resources Holdings LLC's $635 million first-lien term loan due 2019.

The outlook is stable.

EquiPower is using proceeds to purchase the 1,093-megawatt Kincaid coal plant and 50% equity interest in the simple-cycle 735-megawatt Elwood plant, S&P said.

The purchase increases the portfolio's generation capacity to 4,221-megawatts, the agency said.

The BB rating results from having an overall competitive portfolio of natural gas-fired power plants operating in the New England Independent System Operator region and in the PJM Interconnection market, S&P said.

The stable outlook reflects the company's predictable cash flows from some hedges and greater exposure to capacity prices in the PJM region, the agency said.

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