S&P sets prelim B rating to Invenergy Wind Power

Oct 18, 2011 - S&P on Monday gave its preliminary B corporate credit rating to Invenergy Wind Power LLC, a unit of renewable energy firm Invenergy Investment Co LLC.

The service also attached BB- issue-level rating and 1 recovery rating to the company's proposed USD 200 million (EUR 146m) term loan due 2017. The recovery rating denotes very high (90% to 100%) recovery prospects.

The loan proceeds will be used for debt repayment and project development purposes. The company will repay the loan using remaining cash flow from 25 wind projects with an aggregate generation capacity of 2,695 megawatts owned by Invenergy Wind Power and its subsidiaries. Nineteen of the projects are operational, four are under construction and the remaining two are build-transfer schemes.

The ratings on Invenergy Wind Power are underpinned by solid contractual cash flows and the company's use of proven wind turbine technologies.

The ratings, however, are constrained by cash flow concentration on six of the projects, the company's "highly leveraged" financial profile and dependence of financial outcomes on lower turbine availabilities, the service added.

Rating agency website: www.standardandpoors.com

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