S&P affirms Tenaska, Kiowa

Standard & Poor's said it affirmed the BB- rating on Tenaska Oklahoma I LP's $55.2 million unsecured bonds due 2014 and assigned a 6 recovery rating.

The agency affirmed the BBB- rating on Kiowa Power Partners LLC's $536.1 million senior secured bonds due 2013 and 2021, and assigned a 2 recovery rating.

The outlook is stable.

The rating on Tenaska considers that its ability to service debt is directly related to Kiowa's operating performance, S&P said. The rating also reflects low minimum consolidated debt service coverage.

Tempering the project's risks is a strong contractual framework, debt service coverage ratios that resist deterioration under several stress-case scenarios and long-term service agreement with General Electric (AAA/stable/A-1+).

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