S&P rates Investment Energy notes BB-

S&P said it assigned its preliminary BB- long-term issuer credit rating to Investment Energy Resources Ltd. and its subsidiaries.

The outlook is stable.

At the same time, the agency assigned its preliminary BB- issue-level rating on the company’s proposed $600 million 10-year senior unsecured notes.

“Our preliminary BB- issuer credit rating on IERL is based on our view that relatively strong and stable cash flows from the high-margin renewable energy generation business compensate for the company's small scale and exposure to high country risk in Central America,” S&P said in a news release.

“These factors – combined with lower maintenance capital expenditures (capex), manageable debt servicing needs, and discretionary dividends – should allow the company to sustain somewhat aggressive credit metrics.”

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