Moody’s revises Rowville to stable

Moody's Investors Service said it changed Rowville Transmission Facility Pty Ltd.'s Baa1 rating outlook to stable from positive and affirmed the underlying Baa1 rating on its senior secured bonds.

The agency also affirmed the Baa1 rating on the senior secured bonds issued by Rowville and backed by MBIA Insurance Corp. (B3, review for downgrade).

The Baa1 rating is consistent with Moody's policy of rating wrapped bonds at the higher of the insurance financial strength of the bond insurer or the underlying rating of the issuer.

"The change in outlook reflects our view that the rating is more appropriately positioned at the Baa1 level following the facility's unexpected and prolonged outage from 28 April," Moody's analyst Mary Anne Low said in a news release.

"We believe that unscheduled outages increase – although from a low level – the likelihood of early termination scenarios."

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