MUMBAI (Thomson Financial) - Moody's Investors Service upgraded the corporate family rating rating on electricity generator International Power Plc. to 'Ba2' from 'Ba3', and the senior unsecured issuer rating to 'Ba3' from 'B2' as the business has matured to the point where most assets are now operational, with strong cash flow returns from the asset portfolio.
'In isolation, this factor on its own could justify an upgrade to the CFR,' Moody's said.
It added that IPR's recent 700 million eur convertible bond issue, which represents a meaningful but not excessive new obligation, has prompted the one-notch upgrade in the CFR.
While the recent unplanned outage at Rugeley is a reminder of potential earnings volatility at individual projects, especially the older plants, it also demonstrates the resilience of the company's financing structure and its ability to weather significant problems at individual projects without a material change in credit risk for debt at the holding company level, the rating agency said. TFN.newsdesk@thomson.com ran COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'In isolation, this factor on its own could justify an upgrade to the CFR,' Moody's said.
It added that IPR's recent 700 million eur convertible bond issue, which represents a meaningful but not excessive new obligation, has prompted the one-notch upgrade in the CFR.
While the recent unplanned outage at Rugeley is a reminder of potential earnings volatility at individual projects, especially the older plants, it also demonstrates the resilience of the company's financing structure and its ability to weather significant problems at individual projects without a material change in credit risk for debt at the holding company level, the rating agency said. TFN.newsdesk@thomson.com ran COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
