Moody's cuts Choctaw Generation

Moody's Investors Service said it downgraded Choctaw Generation LP's $294 million of outstanding pass-through trust certificates to B2 from Ba3.

The outlook remains negative.

The downgrade considers the project's relative lack of financial flexibility, liquidity and sponsor support, Moody's said.

Financial performance is expected to remain well below levels consistent with a Ba-category rating in 2010 notwithstanding a moderate improvement after three consecutive years of poor performance, the agency said.

The downgrade also reflects the unwillingness and inability of the project sponsor to inject additional capital, Moody's added.

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