NYISO Tariffs --> Market Administration and Control Area Services Tariff (MST) --> 26 MST Attachment K - Creditworthiness Requirements For Cust --> 26.14 MST Att K Material Adverse Change
The amount of Unsecured Credit granted to a Customer, if any, and the amount of the Customer’s Operating Requirement shall be subject to change, at the discretion of the ISO, in the event that there is a material adverse change affecting the risk of nonpayment by the Customer, which includes, but is not limited to: (a) a material change in financial status pursuant to Section 26.2.1.4 of this Attachment K, (b) a downgrade of an Equivalency Rating, (c) a significant change in the Customer’s “Expected Default Frequency (EDF)” as determined by Moody’s KMV CreditEdge, (d) a significant variation in the Customer’s Credit Assessment, (e) a significant increase in a Customer’s credit default swap (CDS) spreads, or (f) a significant decline in a Customer’s market capitalization. In the event the ISO invokes its rights pursuant to this Section 26.14, the ISO will provide the affected Customer with a written explanation of the reasons the ISO declared a material adverse change.
Table K-1Tangible Net Worth Credit Matrix
Customer Rating | Starting Point for Determining Unsecured Credit | |||
Senior Long-term Unsecured Debt Rating | Issuer Rating or Equivalency Rating |
(% of Tangible Net Worth) | ||
S&P, Fitch, and Dominion | Moody’s | S&P, Fitch, Dominion, and NYISO | Moody’s | |
A+ or higher | A1 or higher | AA- or higher | Aa3 or higher | 7.5% |
A | A2 | A+ | A1 | 6.5% |
A- | A3 | A | A2 | 5.0% |
BBB+ | Baa1 | A- | A3 | 4.0% |
BBB | Baa2 | BBB+ | Baa1 | 2.5% |
BBB- | Baa3 | BBB | Baa2 | 1.5% |
BB+ or lower | Ba1 or lower | BBB- or lower | Baa3 or lower | 0% |
Effective Date: 6/18/2013 - Docket #: ER13-1199-001 - Page 1