Essential Power LLC and sponsor IFM Investors (the sponsor) have developed a financing plan to provide credit support for the ineffective heat rate call option (HRCO) hedges at Essential's Newington power plant and to stabilize cash flow. The financing plan will include sponsor-provided support in the form of a gross margin floor for Newington that will replace the HRCO. The plan will also include support from the sponsor to partially fund the full redemption of the $66.3 million senior secured second-lien notes. We are lowering the rating on Essential Power to 'BB-' from 'BB'. We are removing the ratings from CreditWatch, where we placed them with negative implications on Dec. 2, 2013. The stable rating outlook reflects our expectations that
