Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's assigns A3 to Main Street Natural Gas, Inc. Gas Supply Revenue Bonds Series 2018F

12 Dec 2018

New York, December 12, 2018 -- Moody's Investors Service has assigned an A3 rating to Main Street Natural Gas, Inc. (the Issuer), Gas Supply Revenue Bonds, Series 2018F (the Bonds).

The rating on the Bonds takes into account the following factors: (A) the credit quality of Macquarie Group Limited (MGL) (A3) for payments due under (i) the Prepaid Natural Gas Purchase and Sale Agreement (GPA), (ii) the funding agreement, (iii) the back-end commodity swap, and (iv) the custodial agreement; (B) the credit quality of the provider of the guaranteed investment contract (GIC), if any, provided for the debt service account (such provider, which will be rated by Moody's at least as high as the rating on the Bonds, will be identified at closing); and (C) the structure and mechanics of the transaction which provide for the payment of debt service consistent with the rating assigned to the Bonds.

FACTORS THAT COULD LEAD TO AN UPGRADE

• Upgrade of the long-term rating of MGL's senior unsecured obligations.

• Upgrade of the long-term rating of the investment agreement provider.

FACTORS THAT COULD LEAD TO A DOWNGRADE

• Downgrade of the long-term rating of MGL's senior unsecured obligations.

• Downgrade of the long-term rating of the investment agreement provider.

RATINGS RATIONALE

Bond proceeds will be used to prepay the Gas Supplier (Macquarie US Gas Supply LLC (Macquarie US)) for the delivery of a specified quantity of natural gas on a monthly basis over a 30-year period. The Issuer will sell gas acquired under the GPA to the Municipal Gas Authority of Georgia (the Gas Purchaser) under a Natural Gas Supply Agreement. The Bonds will bear interest at a fixed rate and pay interest semi-annually.

Pursuant to the GPA between the Gas Supplier and the Issuer, the Gas Supplier agrees to deliver to the Issuer natural gas on a monthly basis in daily quantities specified in such agreement. The Issuer will in turn sell daily quantities, billed on a monthly basis, of delivered natural gas to the Gas Purchaser pursuant to the Natural Gas Supply Agreement. The monthly price payable by the Gas Purchaser under the Natural Gas Supply Agreement will be equal to the Index Price for such month less a specified discount (the Contract Price). Payments for gas delivered will be due on the 20th of each month following the month of delivery.

In the event there is a deficiency (i) on the last business of each month or (ii) on the second business day prior to any interest payment date or principal payment date, the indenture instructs the trustee to demand a mandatory advance under the funding agreement provided by Macquarie US. Under the funding agreement Macquarie US is obligated to make up such deficiency (up to an amount equal to the highest two months of gas volumes at the fixed price under the commodity swaps per advance) which amount shall be sufficient to pay debt service on any payment date. In addition, certain payment obligations of Macquarie US under the GPA (payment for gas not delivered, gas not taken, force majeure or remarketing of gas) are paid with a mandatory advance pursuant to the funding agreement. The funding agreement payments are guaranteed by MGL.

Since the revenues received from gas sales to the Gas Purchaser are variable and the payments due on the Bonds are fixed, the Issuer entered into front-end commodity swaps with Royal Bank of Canada and JPMorgan Chase Bank, N.A. (collectively the Commodity Swap Counterparties), pursuant to which the Issuer receives fixed payments in exchange for the floating payments calculated using the applicable Index Price. Payments under the commodity swaps will be made on a monthly basis. The netted payments, combined with payments for gas delivered, will be sufficient to pay the debt service due to bondholders. Payments to or from the Commodity Swap Counterparties are due on the 25th of that month.

A failure on the part of the Gas Purchaser to pay for the delivered gas may result in a shortfall in the amounts required to be paid to the Commodity Swap Counterparties. Under the Natural Gas Supply Agreement, the Gas Purchaser is obligated to pay the Contract Price when gas is delivered. If the Gas Purchaser defaults in its payment, the Trustee shall (i) request a mandatory advance under the Funding Agreement as described previously and (ii) instruct the Gas Supplier to immediately suspend delivery of gas and to begin remarketing gas on a monthly basis. A monthly remarketing of gas under this scenario obligates the Gas Supplier to make a minimum payment at least equal to the Net Monthly Price going forward.

Nonpayment by the Commodity Swap Counterparties prior to the redemption of the Bonds is covered by a custodial arrangement relating to the back-end commodity swaps between Macquarie US and the Commodity Swap Counterparties. Payments by Macquarie US to the Commodity Swap Counterparties under the back-end commodity swap are at least equal to payments owed to the Issuer by the Commodity Swap Counterparties on the commodity swaps. In order to address the risk that a nonpayment by the Commodity Swap Counterparties under the commodity swaps could lead to an insufficiency in the payment due to the bondholders or result in an early termination event under the GPA and a redemption of the Bonds, all payments to be made by Maquarie US under the back-end commodity swaps are deposited monthly with a custodian under a custodial agreement. If the Commodity Swap Counterparties fail to make a required payment under the commodity swaps, the custodian is required, under the terms of the custodial agreement, to deliver to the trustee the funds provided by Macquarie US on the back-end commodity swap. Such funds will be applied by the trustee in the same manner as payments made by the Commodity Swap Counterparty and such funds will be sufficient to pay debt service on the Bonds. In addition, should the back-end commodity swap terminate, Macquarie US continues to make required payments pursuant to the custodial agreement until the swap is replaced. The back-end commodity swap and the obligations under the custodial agreement are guaranteed by MGL. Therefore, the rating of the Commodity Swap Counterparties are not a factor in the rating assigned to the Bonds.

The commodity swaps include standard ISDA events of default and termination events. The GPA will automatically terminate upon (i) termination of a commodity swap or back-end commodity swap as a result of any default associated with the swap counterparty unless the swap is replaced, (ii) termination of a commodity swap as a result of certain defaults of the Issuer, (iii) termination of the back-end swap due as a result of a default by Macquarie US and (iv) the gas supplier fails to make certain payments under the GPA (excluding the liquidation payment, as described above) and such payment is not made under the funding agreement. Upon GPA termination, an Early Termination Date will be declared on the last day of the month following the date of the termination of the GPA. On the Early Termination Date, the Gas Supplier will make a liquidation payment sufficient to redeem the Bonds at the amortized value plus accrued interest to the redemption date which will be the first day of the month following the Early Termination Date. The liquidation payment under the GPA is guaranteed by MGL.

If the Gas Supplier fails to deliver gas for any reason including a force majeure, the Gas Supplier is obligated to make payments to the Issuer equal to the highest of the Index Price, the Contract Price, or what the Issuer paid for gas needed to meet its gas delivery obligation to the Gas Purchaser. Any of these amounts (which are guaranteed by MGL pursuant to the funding agreement) will be sufficient to pay debt service and amounts owed under the commodity swaps.

The principal methodology used in this rating was Gas Prepayment Bonds published in March 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Joann Hempel
VP - Senior Credit Officer
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Chandra Ghosal
VP - Senior Analyst/Manager
Public Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

Moodys.com