S&P affirms LSP Batesville

Standard & Poor's said it affirmed its B+ rating on LSP Batesville Funding Corp.'s $150 million senior secured bonds due 2014 and $176 million senior secured bonds due 2025 after a review.

The rating reflects the project's credit risk, given the purchased-power agreement (PPA) with South Mississippi Electric Power Association (not rated) and J. Aron & Co., a unit of The Goldman Sachs Group Inc., the agency said.

S&P added that the B+ rating further reflects risks that include if the tolling agreements are not extended, in the last 12 years of the bonds' term the project will be exposed to price and volume risk in a fully competitive market for power as well as the capacity overbuild in the U.S. Southeast, leading to low electricity market prices.

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