Moody's cuts Longview Power

Moody's Investors Service said it downgraded the secured credit facilities of Longview Power, LLC to Caa2 from B3 and revised the outlook to negative.

The secured credit facilities are comprised of a $451 million term loan due February 2014, a $499 million term loan due October 2017, a $62 million revolving credit facility terminating February 2013, a $38 million revolving credit facility terminating February 2014 and $125 million of synthetic revolver/letter of credit facilities terminating February 2014.

Moody's said the downgrade and negative outlook are a result of continuing operating challenges at the project, which along with persistently weak market conditions for the sale of both power and coal, has further reduced the expectations of the project's cash flow generating ability and added strain to its near term liquidity position and prospects for refinancing

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