S&P views Parkway Generation negatively

S&P said it changed its outlook for Parkway Generation LLC to negative from stable and affirmed the B+ rating on its senior secured debt. The 1 recovery rating (90%-100%; rounded estimate: 90%) on the debt is unchanged.

“Poor operational performance and a coinciding increase in the draw on its revolving credit facility (RCF) has limited Parkway Generation LLC's (Parkway) financial resilience and the project's ability to sweep against its term loan B (TLB). At the same time, the land sale agreement at the Kearny site was terminated, which will contribute to a higher-than-expected TLB balance at maturity,” S&P said in a statement.

However, the agency said Parkway’s liquidity is adequate for the next 12 months with about $40 million cash on hand, and $40 million of revolver availability.

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