S&P affirms Kincaid bonds

Standard & Poor's said that it affirmed Kincaid Generating LLC's $265 million of amortizing senior secured bonds due 2020, of which $177 million is outstanding as of Sept. 30, with a BBB- rating.

The outlook is stable.

The rating reflects Kincaid's solid operational performance, availability rates, improved generating capacity rating to 1,158 MW from an initial 1,108 MW, cash flow and strong financial performance, S&P said.

The rating is constrained by bondholders' exposure to merchant risk beginning in February 2013 and regulatory risks from emission restrictions or carbon tax associated with coal-fired power plants, the agency said.

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