Research Update: Invenergy Thermal Operating I LLC 'BB' Ratings Affirmed; Removed From UCO; Outlook Negative

On Dec. 14, 2022, S&P Global Ratings published its revised criteria for rating project finance transactions, "General Project Finance Rating Methodology" and "Sector-Specific Project Finance Rating Methodology," and placed its ratings on several project finance issuers' debt, including Invenergy Thermal Operating I LLC's, under criteria observation (UCO). We completed our review and affirmed all ratings, including Invenergy's 'BB' rating on Invenergy's term loan B (TLB) due in 2025. We also removed ratings from UCO. The outlook remains negative, reflecting the risk of cash flow underperformance if realized spark spreads for the Nelson and Grays Harbor plants are lower than our expectations in the upcoming 12 months, which could lead to lower-than-expected cash flow sweeps in the TLB. Invenergy owns a

...- On Dec. 14, 2022, S&P Global Ratings published its revised criteria for rating project finance transactions, "General Project Finance Rating Methodology" and "Sector-Specific Project Finance Rating Methodology," and placed its ratings on several project finance issuers' debt, including Invenergy Thermal Operating I LLC's, under criteria observation (UCO). - We completed our review and affirmed all ratings, including Invenergy's '##' rating on Invenergy's term loan B (TLB) due in 2025. We also removed ratings from UCO. - The outlook remains negative, reflecting the risk of cash flow underperformance if realized spark spreads for the Nelson and Grays Harbor plants are lower than our expectations in the upcoming 12 months, which could lead to lower-than-expected cash flow sweeps in the TLB....

Research Update