S&PGlobal Ratings on Oct. 5 assigned a BB- corporate credit rating to with stable a outlook,days after the company emerged from Chapter 11 bankruptcy.
"Wehave assessed TCEH's competitive advantage as adequate/weak. Despite theerosion in margins for conventional base-load generation in ERCOT due torenewable proliferation, we see evidence that a combined wholesale and retailpower strategy provides TCEH the ability to generate floor EBITDA at about $1.1billion to $1.2 billion," S&P analyst Aneesh Prabhu said in a report.
TCEH Corp.,previously known as Texas Competitive Electric Holdings Co. LLC underEnergy Future HoldingsCorp., is the parent company of Luminant Generation Co. LLC, and .
S&Palso gave a BB+ issue-level rating to TCEH subsidiary TEX Operations Co. LLC'sdebtor-in-possession refinancing facilities, which include a $2.85 billion term loan B, a$650 million term loan C due 2023, and a $750 million five-year revolver. Thenew credit facilities will initially refinance TCEH's existing debtor-in-possessioncredit facilities and will then convert to permanent exit financing.
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