S&P ups Rocky Mountain loans to B

Standard & Poor's said it raised Rocky Mountain Energy Center LLC's and Riverside Energy Center LLC's senior secured term loans due 2011 to B from CCC. S&P also affirmed its 1 recovery rating on each project's loan and removed the recovery ratings from CreditWatch with negative implications, where they were placed on Dec. 21.

The outlook is negative.

Both projects are wholly owned indirect subsidiaries of Calpine Corp. (D). The upgrade reflects S&P's assessment that there appears to be a lower likelihood that the projects will be brought into bankruptcy as part of Calpine's proceedings.

The B ratings reflect Calpine's apparent economic disincentive to file the projects into bankruptcy, combined with the recovery prospects, the agency said. The ratings on the projects would be BB- if they were stand-alone alone entities, thus the B rating reflects some risk of a future bankruptcy filing.

S&P said the recovery ratings were removed from CreditWatch based on the receipt of updated information from the projects and the expectation of future timely updates.

© 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.