Moody's may up Elwood senior notes

Moody's Investors Service said it placed under review for possible upgrade the Ba2 rating of Elwood Energy LLC's 8.159% senior secured notes due 2026.

Moody's said the review reflects the improvement in credit quality of Elwood's contractual counterparties following Aquila, Inc.'s (B2 senior unsecured; positive outlook) assignment of its rights under two power sales agreements (PSAs) with Elwood to Constellation Energy Commodities Group, Inc., a subsidiary of Constellation Energy Group, Inc. (CEG: Baa1 senior unsecured; developing outlook).

Constellation's payment obligations under the PSAs are unconditionally guaranteed by CEG.

The rating review will assess the improvement in counterparty credit quality following the assignment of the PSAs from Aquila to Constellation.

© 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.