Moody's upgraded Atlantica Yield PLC's corporate family rating to Ba3 from B1, citing the yieldco's improved liquidity profile following its execution of a new $215 million committed credit facility in May.
The rating agency also upgraded Atlantica Yield's probability of default rating to Ba3-PD from B1-PD and its senior unsecured rating to B1 from B2, with a positive outlook, according to a May 31 report. The ratings action concludes Moody's review of the company that it initiated in April.
Moody's also took into consideration improvements in the operational performance of the yieldco's South African solar plant Kaxu in the first quarter of 2018. Moreover, the action reflects the rating agency's expectation that the U.S. Department of Energy will sign off Algonquin Power & Utilities Corp.'s acquisition of Abengoa SA's remaining 16.5% stake in Atlantica Yield.
The new revolving credit facility matures on December 2021. The yieldco has the option to increase the facility by up to $85 million, to $300 million, subject to meeting certain conditions.
Royal Bank of Canada served as administrative agent for the new credit facility. The bank also served as issuer of letters of credit along with the Canadian Imperial Bank of Commerce.
