Research Update: Constellation Renewables LLC 'B+' Rating Affirmed; Outlook Is Stable

S&P Global Ratings affirmed its 'B+' issuer credit rating (ICR) on Constellation Renewables LLC (CR). The affirmation is based on our expectation that CR will continue operating in line with our projections, supported by the recovery of subprime wind conditions and incremental cash from repowering assets, despite a temporary decrease in cash sweep in 2024. At the same time, we affirmed our 'BB-' issue-level rating on CR's $750 million term loan B (TLB) due 2027. The TLB outstanding as of June 30, 2024, was approximately $630 million. The recovery rating is unchanged at '2', indicating our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default. The stable outlook reflects our expectation that CR's portfolio will

...- S&P Global Ratings affirmed its 'B+' issuer credit rating (ICR) on Constellation Renewables LLC (CR). The affirmation is based on our expectation that CR will continue operating in line with our projections, supported by the recovery of subprime wind conditions and incremental cash from repowering assets, despite a temporary decrease in cash sweep in 2024. - At the same time, we affirmed our '##-' issue-level rating on CR's $750 million term loan B (TLB) due 2027. The TLB outstanding as of June 30, 2024, was approximately $630 million. The recovery rating is unchanged at '2', indicating our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default. - The stable outlook reflects our expectation that CR's portfolio will operate in line with its budget and generate predictable cash flows to support the company's debt obligations over our 12-month outlook horizon....

Research Update