Yellowstone Energy LP Senior Secured Notes #BBB-# Rating Outlook Revised To Positive From Stable

Stocks and Financial Services Press Releases Friday February 9, 2018 08:39
SAN FRANCISCO--9 Feb--S&P Global Ratings

SAN FRANCISCO (S&P Global Ratings) Feb. 8, 2018-- S&P Global Ratings today revised the outlook on Yellowstone Energy LP's (YELP) senior debt to positive from stable, and affirmed the 'BBB-' rating on YELP's $131.5 million senior secured notes due 2026.

The YELP project is a pet-coke-fueled, circulating–fluidized-bed power plant adjacent to an Exxon Mobil Corp. (Exxon) refinery in Billings, Mont. The plant produces electricity, steam, and ash, and sells its electricity to Northwestern Energy, the utility subsidiary of NorthWestern Corp.(BBB/Stable/-- ), under a 35-year take-and-pay power purchase agreement (PPA) that extends two years beyond the debt maturity. The project's operational performance remains strong and pet coke prices have continued to decline.

If operational performance remains steady, ancillary revenues increase, and supplemental pet coke prices remain negative, our base case financial forecast will likely improve further, leading to higher minimum coverage, which will likely trigger a one-notch upgrade in the next year or two.

Our positive outlook reflects our view that minimum debt service coverage under our base case forecast is likely to increase over the next two years, triggering an upgrade by one notch. Most of the project's revenues derive from a strong PPA with a highly rated offtaker that takes most energy at high fixed prices under a contract that runs beyond the debt's term, providing cash flow stability. Ancillary revenues from ash sales are expected to increase as a result of increased oil drilling in the Bakken. In addition, as the only local consumer of pet coke, we anticipate that supplemental coke prices will likely stay negative, lowering the project's raw material costs.

Latest Press Release

AEON partners with JCB to launch AEON J-Premier Platinum Credit Card to offer exclusive privileges throughout Thailand and Japan

AEON Thana Sinsap (Thailand) Public Company Limited partners with JCB International (Thailand) Co., Ltd. to launch "AEON J-Premier Platinum Credit Card" that will allow Thais to enjoy everything Japan, with exclusive privileges and offers in dining,...

China and Europe post double digit increases in RD spending

- China and Europe increase R&D spending the most as global R&D investment reaches US$782bn - 88 companies outperform industry peers on sustained financial success with modest R&D spend - Amazon retains top spot as world's largest corporate...

Photo Release: EXIM Thailand Hosts 6th Council of Specialized Financial Institutions Meeting in 2018

Mr. Pisit Serewiwattana (forth right), President of Export-Import Bank of Thailand (EXIM Thailand), welcomed Mr. Pornchai Triraveja (fifth right), Fiscal Policy Advisor of Fiscal Policy Office (FPO), and Mr. Chatchai Sirilai (fifth left), President of...

Kinesis Money and Allocated Bullion Exchange Explore Creating a Joint Commercial Blockchain Venture with Jakarta Futures Exchange in Indonesia

Today, Jakarta Futures Exchange (JFX), the leading futures and derivatives exchange group in Indonesia, have announced an expanded Memorandum of Understanding (MOU) with Kinesis Money and Allocated Bullion Exchange (ABX). The partnership will seek to...

Photo Release: SCB and Mae Fah Luang University Make Headway for Cashless Society with Smart University Program

"The Siam Commercial Bank (SCB)", the leader in digital lifestyle banking, continues to pave way for a cashless society at universities across Thailand. The partnership with Mae Fah Luang University continues its "Smart University" program. MFU App is...

Related Topics