Moody's lowers Longview

Moody's Investors Service said it downgraded Longview Intermediate Holdings C, LLC's senior secured credit facilities to Ca from Caa1. The senior secured credit facilities include a $286.5 million seven-year senior secured term loan B due April 2021 and a $25 million revolving credit facility due in April. Longview's outlook is negative.

“The downgrade to Ca from Caa1 reflects Longview's higher default probability owing to a challenging wholesale power market in PJM Interconnection, LLC for merchant coal-fired generation as we anticipate first-quarter results, a critical period for this asset class, to be materially weaker from a revenue and cash flow standpoint. The downgrade acknowledges the current wholesale market is likely to persist increasing the prospects for some form of future debt restructuring as the capital structure is not sustainable in the current wholesale power market,” said the agency in a press release.

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