Research Update: Lightstone HoldCo LLC Senior Secured Debt Rating Lowered To 'B-' From 'B+'; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Lightstone HoldCo LLC Senior Secured Debt Rating Lowered To 'B-' From 'B+'; Outlook Negative

Research Update: Lightstone HoldCo LLC Senior Secured Debt Rating Lowered To 'B-' From 'B+'; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Lightstone HoldCo LLC Senior Secured Debt Rating Lowered To 'B-' From 'B+'; Outlook Negative
Published Jun 25, 2021
8 pages (3205 words) — Published Jun 25, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Following the 2022/2023 PJM Capacity Auction, we now expect Lightstone HoldCo LLC will have a higher debt balance at maturity and consequently lower debt service coverage ratios (DSCRs) from 2024 through 2030. We lowered the rating on Lightstone's senior secured debt to 'B-' from 'B+'. Our recovery rating on this debt remains '3 (55% rounded estimate). The negative outlook reflects the possibility that we could lower the rating on Lightstone in the near term if we believe its capital structure is unsustainable. This would likely occur if the project does not sweep cash on the term loan in 2021 and we continue to see tepid recovery of weak market conditions that leads to debt outstanding at maturity greater than $1.48

  
Brief Excerpt:

...- Following the 2022/2023 PJM Capacity Auction, we now expect Lightstone HoldCo LLC will have a higher debt balance at maturity and consequently lower debt service coverage ratios (DSCRs) from 2024 through 2030. - We lowered the rating on Lightstone's senior secured debt to 'B-' from 'B+'. Our recovery rating on this debt remains '3 (55% rounded estimate). - The negative outlook reflects the possibility that we could lower the rating on Lightstone in the near term if we believe its capital structure is unsustainable. This would likely occur if the project does not sweep cash on the term loan in 2021 and we continue to see tepid recovery of weak market conditions that leads to debt outstanding at maturity greater than $1.48 billion....

  
Report Type:

Research Update

Issuer
Lightstone HoldCo LLC
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Lightstone HoldCo LLC Senior Secured Debt Rating Lowered To 'B-' From 'B+'; Outlook Negative" Jun 25, 2021. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Lightstone-HoldCo-LLC-Senior-Secured-Debt-Rating-Lowered-To-B-From-B-Outlook-Negative-2684207>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Lightstone HoldCo LLC Senior Secured Debt Rating Lowered To 'B-' From 'B+'; Outlook Negative Jun 25, 2021. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Lightstone-HoldCo-LLC-Senior-Secured-Debt-Rating-Lowered-To-B-From-B-Outlook-Negative-2684207>
  
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