Moody's downgrades K2 Pure

Moody's Investors Service said it downgraded K2 Pure Solutions NoCal, LP's $121.5 million term loan to Caa1 from B3.

The outlook was revised to negative from stable.

The action reflects the effective depletion of the debt-service reserve due to phase I completion delays and cost overruns even after the project achieved mechanical completion in September 2011, Moody's said.

Given the project's history of delays and cost overruns, the agency said it views significant uncertainty regarding the timing and ultimate cost of reaching any of the construction completion deadlines in the debt-financing agreement.

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