Moody’s views Parkway negatively

Moody’s Ratings said it changed its outlook for Parkway Generation LLC to negative from stable and affirmed the B1 ratings on its senior secured credit facilities consisting of a $1.057 billion term loan B due 2029, $140 million term loan C due 2029, and $100 million revolving credit facility due 2027.

Parkway's 2023 performance was weaker than Moody’s and management expected owing to lower energy margin contributions than previously budgeted, and the expectation of weak credit metrics through 2024, the agency said.

“We originally expected the project would restore its liquidity position with proceeds from the sale of excess land located at the Kearny generation site. However, the asset sale transaction originally contemplated did not occur. We understand that Parkway is currently engaged with other potential buyers; however, the valuation is expected to be significantly lower than the $62.5 million previously expected, and the closing is expected to occur later this year,” Moody’s said in a press release.

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