...July 3, 2019 - Because of financial underperformance in the first half of 2019, Kestrel Acquisition LLC (Kestrel), the owner of the Hunterstown Generating Station (Hunterstown), did not pay down debt via the cash sweep mechanism in June, as we had expected. - We've revised our forecast to reflect higher debt balances and lower expected cash flows in future periods, which has resulted in lower debt service coverage ratios (DSCR) throughout the life of the plant, and increases the project's refinancing risk in our view. - We are lowering our senior secured debt rating on Kestrel to '##-' from '##' based primarily on the lower DSCRs and we are revising the recovery rating to '2' from '1' to reflect our expectation that there would be more debt outstanding in a default than we previously anticipated. - We are also revising the rating outlook to negative from stable. The negative outlook incorporates our view that the project will need to accumulate cash in the revenue account over the next...
