Moody's rates Race Point loan Ba2

Moody's Investors Service said it assigned Race Point Power's $370 million senior secured term loan due 2017 a Ba2 rating.

The outlook is stable.

Proceeds from the transaction will be used to refinance existing debt, to pay related transaction fees and expenses, for general corporate purposes and to fund a liquidity and capex reserve to fund various project accounts.

The rating reflects the diversity of a portfolio of 8 power projects in the U.S. and Spain; the largely contracted nature of the portfolio, which provides stable cash flows through long-term power purchase agreements, primarily with investment grade counterparties and the strong operating histories of the generation projects with commercially proven technologies, Moody's said.

The rating also reflects high consolidated leverage, regulatory risk and potential for changes to the regulated tariff structure, refinancing risk and the structurally subordinated position of the holding companies' lenders, the agency said.

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