S&P drops Tenaska Alabama bonds to 3

Standard & Poor's said it revised its recovery rating to 3 from 2 on Tenaska Alabama Partners LP's $361 million senior secured bonds due June 2010.

At the same time, S&P said it affirmed its BB rating on Tenaska Alabama.

The 3 recovery rating indicates a meaningful recovery between 50%-70% on Tenaska Alabama LLC's bonds, the agency noted.

"The recovery rating was revised to reflect a timely year of default and an updated valuation analysis in the Southern Power Pool region," said credit analyst Grace Drinker.

"The most likely default scenario remains the same, with high operating costs combined with a significant deterioration in plant heat rate; however, the default year has been pushed out to 2016 from 2010."

© 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.