San Francisco (S&P Global Ratings) July 18, 2019--S&P Global Ratings today said that Panoche Energy Center LLC's (Panoche) failure to negotiate a renewal of its letter of credit (LOC) facility that backstops its debt service reserve account (DSRA) maturing Aug. 1, 2019, will not result in an immediate downgrade. Given that Panoche's LOC lender, BNP Paribus, has notified the project that it will not renew, we expect the project will draw down the LOC prior to its August expiration. This will provide Panoche with a cash reserve fund to backstop any debt service shortfall. As a result, our view of the project's liquidity profile is unchanged. However, the draw will trigger a roughly three-year repayment period for Panoche to refund
