Moody’s gives Ba2 to Vistra loan

Moody’s Ratings said it assigned a Ba2 rating to Vistra Zero Operating Co., LLC's new $700 million senior secured term loan B and stable outlook.

Vistra Zero is a newly formed subsidiary of Vistra Corp. holds a portfolio of projects consisting mainly of battery storage and solar generation facilities in California and Texas with long-term contracted cash flow. The parent’s ratings are unchanged, the agency said.

"Vistra Zero's credit profile is inextricably linked to parent company Vistra because the subsidiary is dependent on Vistra for its liquidity needs and about half of its revenues," said Toby Shea, a Moody’s vice president and senior credit officer, in a press release.

"Nevertheless, the $700 million term loan issuance at Vistra Zero is rated two notches below the senior secured notes of affiliate Vistra Operations Co. LLC (Vistra Operations) because the term loan is non-recourse to Vistra and the collateral is limited solely to Vistra Zero's assets, which are dominated by battery storage facilities that have yet to prove to be consistently reliable," Shea added.

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