Moody’s cuts Longview loans to B3

Moody's Investors Service said it downgraded the rating on Longview Intermediate Holdings C, LLC's roughly $298 million senior secured term loan due 2021 and $25 million five-year senior secured revolving credit facility due 2020 to B3 from B2 reflecting weakened financial performance, continued negative free cash flow impacting liquidity and the need for financial covenant relief.

The outlook is negative.

The downgrade to B3 from B2 reflects the continued expectation for low power prices owing in large part to low natural gas prices, continued challenges in improving the mining segment to levels originally anticipated, some uncertainty surrounding the project's cash flow generating ability owing to the plant's limited operating history, and its position as an entirely merchant generating facility, the agency explained.

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