Research Update: EFS Cogen I LLC Debt Rating Lowered To 'B+' From 'BB-' On Revised Capacity Price Forecast; Outlook Is Stable

S&P Global Ratings lowered its rating on EFS Cogen I LLC's (Linden) senior secured debt to 'B+' from 'BB-' The outlook is stable. The '2' recovery rating is unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 85%) recovery in the event of default. The downgrade reflects our expectation of weaker forecast cash flows from the project in light of our updated capacity price projections for New York Independent System Operator (NYISO) Zone J. The stable outlook reflects our expectation of strong debt service coverage during the remaining term loan B (TLB) period, as well as debt service coverage ratios (DSCRs) of about 1.20x-1.25x during the post-TLB period (2028-2035), based on our refinancing assumptions, as well as our outlook on

...- S&P Global Ratings lowered its rating on EFS Cogen I LLC's (Linden) senior secured debt to 'B+' from '##-' The outlook is stable. The '2' recovery rating is unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 85%) recovery in the event of default. - The downgrade reflects our expectation of weaker forecast cash flows from the project in light of our updated capacity price projections for New York Independent System Operator (NYISO) Zone J. - The stable outlook reflects our expectation of strong debt service coverage during the remaining term loan B (TLB) period, as well as debt service coverage ratios (DSCRs) of about 1.20x-1.25x during the post-TLB period (2028-2035), based on our refinancing assumptions, as well as our outlook on the energy and capacity markets....

Research Update