Moody's affirms FPL Energy

Moody's Investors Service said it confirmed the Ba1 rating of FPL Energy Virginia Funding Corp.'s $158 million in outstanding 7.52% senior secured bonds.

The outlook is stable.

Moody's said the confirmation and maintenance of a stable outlook reflects its review of additional information surrounding LS Power Equity Fund II LP's proposed acquisition of the 879MW Doswell Energy Center, which is financed with debt issued by Funding Corp.

Specifically, Moody's said, LS Power intends to make meaningful capital commitments to the project relating to the procurement of fuel used by Doswell, the funding of the project's major maintenance reserve, the funding of a debt service account within the project waterfall, and the funding of the project's six month debt service reserve.

Together, Moody's said it calculates that at acquisition close, LS Power will provide $97 million of incremental cash to the project plus a $6 million letter of credit issued by LS Power for the benefit of Doswell.

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