The 'BBB' rating on Power Receivable Finance LLC's (PRF) $432.0 million senior secured notes ($425 million outstanding) and the 'BB+' rating on the company's $22.2 million subordinated notes are supported by the contractual structure provided by the transaction documents, and the credit worthiness of the power purchaser, the California Department of Water Resources (CDWR; BBB+/Negative/--), and power provider (J. Aron & Co., guaranteed by The Goldman Sachs Group, Inc. (GSG; A+/Stable/A-1)). The ratings on the two tranches are two notches apart based on Standard & Poor's view of the difference in default probability and recovery prospects in a bankruptcy due to the subordination. Unless Standard & Poor's view of these differences changes, the ratings on the two tranches will remain...
Companies mentioned in this report are:
- California Dept of Wtr Resources
- The Goldman Sachs Group Inc.
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