Research Update: Invenergy Thermal Operating I LLC Senior Debt Issues Assigned 'BB' Final Ratings; Outlook Stable

We are assigning final 'BB' ratings to Invenergy Thermal Operating I LLC's (ITOI) $350 million term loan B due in 2025 and its $65 million first-lien working capital facility due in 2023. The recovery rating is '1', indicating our expectation for very high recovery (90%-100%; rounded estimate: 90%) in our default scenario. The ratings reflect higher coverage levels compared to the ratings on the facilities being refinanced due to deleveraging, the addition of the Grays Harbor plant to the portfolio, and an updated base-case financial forecast that reflects improved performance at the Nelson plant. The project's resiliency in our downside case has also improved considerably because of lower leverage and a high proportion of contracted revenues over the course of

...+ We are assigning final '##' ratings to Invenergy Thermal Operating I LLC's (ITOI) $350 million term loan B due in 2025 and its $65 million first-lien working capital facility due in 2023. + The recovery rating is '1', indicating our expectation for very high recovery (90%-100%; rounded estimate: 90%) in our default scenario. + The ratings reflect higher coverage levels compared to the ratings on the facilities being refinanced due to deleveraging, the addition of the Grays Harbor plant to the portfolio, and an updated base-case financial forecast that reflects improved performance at the Nelson plant. + The project's resiliency in our downside case has also improved considerably because of lower leverage and a high proportion of contracted revenues over the course of the term loan B. + The stable outlook reflects our expectation that consolidated debt-service coverage ratios (DSCRs) will remain in the lower end of the 1.5x-2.5x range during the next several years...

Research Update