S&P turns Lightstone view to negative

S&P said it affirmed Lighstone HoldCo LLC’s B+ senior secured debt rating but revised the outlook to negative from stable. The debt’s recovery rating remains 3.

Based on power prices in the Pennsylvania-Jersey-Maryland region, the agency said it forecasts Lightstone’s energy margins and spark spreads to be somewhat weaker on a forward-looking basis than it had previously anticipated.

“The negative outlook reflects the possibility that we could lower the rating on Lightstone in the near term if the project does not sweep cash on the term loan in 2021, and we continue to see a tepid recovery of weak market conditions that leads to debt outstanding at maturity greater than $1.4 billion,” S&P said in a press release.

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