Essential Power LLC 'BB-' Rating Affirmed; Outlook Negative

U.S.-based power project financing Essential Power LLC has made some modest adjustments to its capital structure that overall are neutral to credit. Essential is amending its credit agreement to reduce the revolving credit facility to $75 million, extend the maturity to 2018 from 2017, and ease up on covenants during the July 2017 to July 2018 period. We are affirming our 'BB-' rating on Essential Power LLC's $565 million senior secured term loan B and amended $75 million senior secured revolving credit facility. The recovery rating remains '2', indicating our expectation for substantial recovery (lower half of the 70% to 90% range) in a default scenario. The outlook remains negative based on the continued potential for weaker financial performance in

...+ U.S.-based power project financing Essential Power LLC has made some modest adjustments to its capital structure that overall are neutral to credit. + Essential is amending its credit agreement to reduce the revolving credit facility to $75 million, extend the maturity to 2018 from 2017, and ease up on covenants during the July 2017 to July 2018 period. + We are affirming our '##-' rating on Essential Power LLC's $565 million senior secured term loan B and amended $75 million senior secured revolving credit facility. The recovery rating remains '2', indicating our expectation for substantial recovery (lower half of the 70% to 90% range) in a default scenario. + The outlook remains negative based on the continued potential for weaker financial performance in light of weak power markets. NEW YORK (S&P Global Ratings) Oct. 21, 2016--S&P Global Ratings said today it affirmed its '##-' rating on Essential Power LLC's senior secured debt. The outlook remains negative. At the same, we left unchanged...

Ratings Action