...March 9, 2021 - Because of continued financial underperformance and weakness in projected spark spreads, we expect Kestrel Acquisition LLC, the owner of the Hunterstown Generating Station, will now carry higher projected debt balances through 2025, when its term loan matures. - We 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 (DSCRs) throughout the life of the plant and increased refinancing risk. - We are lowering our senior secured debt rating on Kestrel to 'B' from 'B+', based on lower DSCRs in the post-refinance period. The outlook is negative. - The '2' recovery rating is unchanged. The rounded recovery percentage is now 70%, down from 80% in our last review, indicating our expectation for substantial recovery for lenders in the event of default. - The negative outlook reflects several potential headwinds over the near term that could result in further rating actions. These...
