S&P cuts Kiowa, Tenaska to negative

Standard & Poor's said it revised the outlook to negative from stable and affirmed the BBB- rating on Kiowa Power Partners LLC's $642 million of senior secured bonds due in 2013 and 2021. T

The negative outlook reflects the potential for Kiowa's financial performance to weaken further due to higher tax costs and a greater operational risk profile, the agency said.

S&P revised the outlook to negative from stable and affirmed the BB- rating on Tenaska Oklahoma I LP's $73.5 million of senior secured bonds due 2014 because Tenaska Oklahoma pays debt with distributions from Kiowa.

The negative outlooks are a result of the continual underestimation of property taxes and increased operational risk at the plant, the agency said.

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