S&P changes Helix Gen view downward

S&P said it revised the outlook for Helix Gen Funding LLC to negative from stable and affirmed its ratings.

“The negative outlook reflects our view that, despite likely higher capacity prices in Zone J for the next two years, the project has not demonstrated a track record of deleveraging and continues to lag expectations and its target debt balance. Although we believe this is achievable, the project would need to demonstrate its ability and willingness to delever with a minimum debt paydown of $60 million in 2020 to maintain the current rating,” said S&P in a press release.

Without this, the project's metrics would likely be more in line with a B+ rating. “We continue to expect the project to maintain operations consistent with historical performance and maintain DSCRs greater than 1.45x in every year of our forecast period,” S&P said.

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