...- On June 15, 2020, S&P Global Ratings assigned a '##-' rating to utility provider Pacific Gas & Electric Co. (PG&E) ahead of its emergence from bankruptcy protection. - Firebaugh, Calif.-based electric power generator Panoche Energy Center LLC (PEC) sells all of its output to PG&E under a long-term power purchase agreement (PPA), making PEC reliant on the utility for revenues. Because the project delivers an essential service and there is regulatory precedent that supports counterparty payments, we are applying an additional notch of uplift to derive our counterparty cap, resulting in a maximum project rating of '##'. - We are raising the project issue rating on PEC to '##-' from '###+' following the higher rating on PG&E and based on our minimum coverage of 1.06x in 2020, which sets the final rating one notch below the counterparty cap, lower than the minimum before Panoche was downgraded from '##' due to PG&E's bankruptcy. - However, the outlook is positive as we forecast minimum coverage...
