The 'BBB' rating on Power Receivable Finance LLC's (PRF) $432 million senior secured notes ($351 million outstanding as of May 31, 2006) and the 'BB+' rating on the company's $22.2 million subordinated notes ($19.9 million outstanding as of May 31, 2006) are supported by the contractual structure provided by the transaction documents, as well as by the creditworthiness of the California Department of Water Resources (CDWR), based on the 'A-' rating on the CDWR power bonds, and of J. Aron & Co. (J. Aron), whose obligations are guaranteed by The Goldman Sachs Group Inc. (GSG; A+/Positive/A-1). The ratings on the two tranches are two notches apart, based on Standard & Poor's Ratings Services' view of the difference in default probability...
Companies mentioned in this report are:
- The Goldman Sachs Group Inc.
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