S&P assigns Midland Cogeneration bonds B

Standard & Poor's said its B rating on Midland Cogeneration Venture LP's (MCV) $200 million bonds remain on CreditWatch with negative implications.

S&P added that the CreditWatch update follows Consumers Energy Co.'s announcement that it has sold its interests in MCV to GSO Capital Partners and Rockland Capital Energy Investments.

The CreditWatch listing will be resolved once there is more clarity regarding the effect of the new ownership, S&P said, adding, however, more importantly, the rating remains on CreditWatch with negative implications to reflect the uncertainty that remains regarding how the economics of the project unfold after 2007 when many of the gas hedges expire and Consumers Energy can invoke its regulatory out under the power purchase agreement.

According to the agency, the B rating reflects MCV's stand-alone credit quality.

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