S&P changes Talen Energy view

S&P said it affirmed its B+ issuer credit rating on Talen Energy Supply LLC and revised the outlook to stable from negative.

The agency also affirmed the BB issue-level rating on the company's senior secured debt. The 1 recovery rating reflects an expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of default.

In addition, S&P affirmed the B+ issue-level rating on the company's unsecured guaranteed notes. The recovery rating is 4, reflecting an expectation of average (30%-50%; rounded estimate: 45%) recovery.

At the same time, the agency affirmed the B- issue-level rating on the company's unsecured unguaranteed debt. The recovery rating is 6, reflecting an expectation of negligible (0%-10%; rounded estimate: 0%) recovery.

“The outlook revision stems from Talen's recent efforts to reduce costs,” S&P said in a news release.

The agency said that based on revised expectations, it now anticipates that Talen's leverage will decline beneath prior expectations.

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