Moody's lowers Kincaid

Moody's Investors Service said it downgraded Kincaid Generation LLC's senior secured bonds to Ba1 from Baa3.

The outlook was changed to stable from negative.

Moody's said the action reflects the expected cash flow volatility that Kincaid will experience after the maturity of its power purchase agreement with Exelon Generating in February 2013.

The combination of low merchant energy margins in the current environment of low natural gas prices and the high volatility associated with PJM's capacity prices reduces cash flow visibility beginning in March 2013, the agency said.

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