Moody’s rates Talen Energy notes B1

Moody's Investors Service said it assigned a B1 rating to roughly $98 million of Talen Energy Supply, LLC senior unsecured guaranteed notes due 2024 that Talen plans to issue in exchange for a like amount of its senior unsecured unguaranteed notes due 2021.

Concurrently, the agency affirmed the company’s existing ratings, including its corporate family rating at B1, probability of default rating at B1-PD, senior secured debt at Ba1, senior unsecured guaranteed debt at B1 and senior unsecured nonguaranteed debt at B3. The speculative grade liquidity rating remains SGL-2.

The outlook is stable.

Moody’s said the action follows the conclusion of Talen's offer to exchange any and all of its 4.6% senior unsecured notes due 2021 (currently $703 million outstanding) for a similar amount of new 6˝% senior guaranteed notes due 2024. Only about $98 million of 2021 notes were tendered for exchange.

The potential shift in debt priorities has no impact on Talen's fundamental credit profile, or its B1 corporate family rating, and the modest amount of notes exchanged had no impact on the ratings of Talen's existing securities, the agency added.

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