S&P lowers Edison Mission

Standard & Poor's said it lowered the corporate credit rating on Edison Mission Energy and subsidiaries Midwest Generation LLC and Edison Mission Marketing & Trading, Inc. to CCC+ from B- based on greater refinance risk in 2013 due to lower cash flow over the medium term and reduced liquidity.

The outlook is negative.

The agency also said it lowered the rating on Homer City Funding LLC's senior secured notes to B from B+ based on expectations of transaction stress because Homer City is unlikely to make the equity rent payment in April 2012 and exhibits low future debt service coverage ratios based on its base case forecast.

The agency also said it placed the rating on CreditWatch negative pending further analysis.

S&P said it thinks the risk that Edison Mission will be unable to refinance its $500 million notes in June 2013 on reasonable terms is greater because of reduced future cash flows driven by low natural gas prices and lower company liquidity.

© 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.