Research Update: Carroll County Energy LLC Senior Secured Debt Rating Affirmed At 'BB-' (Recovery Rating: '2'); Outlook Stable

S&P Global Ratings affirmed its 'BB-' rating on Carroll County Energy LLC's (CCE) senior secured term loan B (TLB) and revolving credit facility (RCF). The '2' recovery rating on the debt is unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in a default scenario. The stable outlook reflects our expectation of high levels of availability and dispatch, as well as spark spreads of $13/megawatt-hour (MWh) to $15/MWh over the next few years. Based on these assumptions, we project debt repayment (excluding mandatory amortization) of at least $12 million this year and a minimum debt service coverage ratio (DSCR) of at least 1.36x over the asset life. CCE is a 700-megawatt (MW) combined-cycle natural gas-fired power plant. The

...- S&P Global Ratings affirmed its '##-' rating on Carroll County Energy LLC's (CCE) senior secured term loan B (TLB) and revolving credit facility (RCF). - The '2' recovery rating on the debt is unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in a default scenario. - The stable outlook reflects our expectation of high levels of availability and dispatch, as well as spark spreads of $13/megawatt-hour (MWh) to $15/MWh over the next few years. Based on these assumptions, we project debt repayment (excluding mandatory amortization) of at least $12 million this year and a minimum debt service coverage ratio (DSCR) of at least 1.36x over the asset life....

Research Update