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AES Red Oak LLC Jan 09
Standard & Poors, Jan 2009
Abstract
The ratings on power provider AES Red Oak LLC (Red Oak) reflect historically low debt service coverage and a merchant tail in the last eight years of the bond term. These weaknesses are mitigated by an improving dispatch profile and availability factors that have resulted in stronger debt service coverage in the past two years. A 20-year power purchase agreement (PPA) also mitigates market exposure through about 2020. Without this PPA, the project would operate under merchant conditions and may be unable to service its obligations at the current debt level. However, debt is projected to drop to manageable levels for merchant operations by the time the PPA expires. While debt service coverage could improve further, the rating on Red...
Companies mentioned in this report are: AES Red Oak LLC,Indianapolis Power & Light Co.,IPALCO Enterprises Inc.,AES Corp. (The),AES Gener S.A.,AES China Generating Co. Ltd.,C.A. La Electricidad De Caracas ,AES Eastern Energy L.P.,AES Ironwood LLC,AES Sul Distribuidora Gaucha de Energia S.A.,AES CHIVOR & CIA S.C.A. E.S.P.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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