esi and mnm, page-7

Loy Yang have not and do not have a credit rating to improve - neither do Transfield nor TSIF, the fund that owns part of Loy Yang.

Over recent times generally speaking, I would also suggest that the (internal bank ratings) of power stations have deteriorated.... I can't see that reversing any time soon & here is why:

There are likely two things that would improve a Loy Yang (or someone else's) credit rating
(1) Sustainability of cashflows, profitability & certainty of repayment of debt or (2) Parent Support - a guarantee from a parent entity (most power stations are subsidiaries of other companies).

2) What parent wants to bail out a power station in Australia at the moment? In this uncertain climate (yes that is a pun), it is going to be hard ask.

And yes, I would like to think that Coldry could be a small part of this solution. I do hold ESIO. I no longer hold ESI. I will buy some more, when La Jolla is ready for the next dump. Nice (not).

1) As for banks - from experience, are not alltruistic (just look at Centro), they are not emotional - unless their reputation is at stake (e.g. Opus, Tricom, Gunns etc)They just want to be repaid with a high a degree of certainty as possible. Simple concept.

Is this more or less likely in this uncertain climate of carbon tax, higher funding costs = answer, less.
If there is less certainty, what will banks do IF they extend loans = usually they will increase margins, take some fees without putting the other party under undue stress. Also, they will take security of assets (as they may later end up taking ownership of the same), tighten covenants etc.

Ok, getting off point, which is:
the outlook for power stations aint rosy.

I blame the government - but I can, I am a simple voter.
Not a potential partner - which Exergen is & ESI not.
Why not?