On May 17, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on AES Corp. to 'BB-' from 'BB'. The decision affects about $5.3 billion of parent-level recourse secured and unsecured notes and trust preferred securities. We assigned a '1' recovery rating to the $1.05 billion senior secured term loan facility, indicating very high (90% to 100%) recovery. Recovery ratings on the unsecured notes remain at '3', indicating expectations of meaningful (50%-70%) recovery of principal in a payment default scenario. The recovery score on the trust preferred securities is '6'. An $800 million senior first-priority secured revolver facility, due 2015, is unrated. Also unrated, for the most part, are almost $14 billion of non-recourse project- and subsidiary-level debt...
Companies mentioned in this report are: AES Corp. (The)
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