S&P: Entergy Rhode Island loan BB

Standard & Poor’s said it assigned a BB rating and 1 recovery rating to Entergy Rhode Island State Energy LP’s $325 million senior secured term loan B due 2022 and $50 million senior secured revolving credit facility due 2020.

The outlook is stable.

The term loan will be repaid through the minimal 1% mandatory amortization that is typical of a term loan B and a 75% excess cash flow sweep that is subject to increase based on a target debt balance.

The entity that initially issued the debt is Entergy Rhode Island Energy Center LP, S&P said. This entity will undergo a name change to Rhode Island State Energy Center LP, the agency said.

The ratings reflect the project’s merchant exposure to ISO-NE SEMA/RI energy and capacity markets, S&P said, and the limitation of being a single asset.

These risks are partially offset by Entergy Rhode Island’s strong positioning in the ISO-NE SEMA/RI and operating track record since it reached commercial operations in November 2002, the agency said.

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