Fitch lowers Kleen Energy

Fitch Ratings said it downgraded to BB from BBB- the rating of Kleen Energy Systems, LLC's $435 million term loan A due 2018 and $295 million term loan B due 2024.

The downgrade reflects a sharp upward shift in Kleen's cost structure and unexpected shortfalls in contractual revenues, Fitch said.

The outlook also was been revised to negative from stable.

The ratings reflect Kleen's revenues, which are are initially derived from fixed-price tolling and capacity agreements with investment-grade counterparties, partially mitigating price risks through 2017, Fitch said.

The ratings also consider its lack of operational history, the agency said. Kleen has not yet established a stable cost profile or demonstrated a pattern of consistent operating performance, Fitch said.

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