S&P rates TerraForm loan BB, notes B+

Standard & Poor’s said it assigned its preliminary B+ corporate credit rating to TerraForm Global Inc. The outlook is stable.

At the same time, S&P assigned its preliminary BB issue-level rating to subsidiary TerraForm Global Operating LLC’s $440 million senior secured revolving credit facility. The recovery rating is 1, indicating that lenders can expect very high (90%-100%) recovery if a default occurs.

S&P also assigned a preliminary B+ issue-level rating to the company’s $800 million senior unsecured notes due 2022. The recovery rating is 3, indicating that lenders can expect meaningful (50%-70%; in the upper half of the range) recovery if a default occurs.

“Our preliminary B+ corporate credit rating on GLBL reflects its significant exposure to emerging market regulatory risk in the renewable power markets, management's limited experience operating in these jurisdictions, and an aggressive growth profile that entails execution risk,” said S&P credit analyst Nora Pickens in a news release.

“These weaknesses are only partially offset by good geographic and operational diversity; our expectation for stable cash flow generation from long term, fee-based offtake contracts; and a moderate level of debt at the holding company.”

© 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.