S&P: Talen Energy notes B+

S&P said it lowered the rating on Talen Energy Supply LLC's unsecured guaranteed notes to B+ from BB-.

The agency also said it revised the recovery rating on the notes to 3 from 2.

S&P also said it assigned a 3 recovery rating and B+ rating to Talen's new unsecured guaranteed notes due 2027.

The B+ rating is unchanged.

The outlook is negative.

The revision of the recovery rating stems from diminished asset valuation on the Susquehanna Nuclear Asset and certain coal assets, S&P explained.

The B+ rating reflects a fair business risk profile and a highly leveraged financial risk profile with a positive comparable ratings adjustor, the agency said.

The negative outlook considers an opinion that weakening energy margins for coal and nuclear generators throughout the issuer's key regions could accentuate the high leverage facing this issuer going forward, S&P said.

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