S&P: Midland Cogeneration up to stable

Standard & Poor's said it revised its outlook on all of Midland Cogeneration Venture LP's bonds to stable from negative.

The rated bonds include Midland County Economic Development Corp.'s BB- rated $200 million in tax-exempt subordinate secured lease bonds due 2009 and Midland Funding Corp. II's BB- rated $367 million subordinated secured lease obligation bonds due 2005 and 2006.

This rating action reflects the approval by the Michigan Public Service Commission of the Resource Conservation Agreement that is designed to provide economic dispatch of the Midland Cogeneration's power plant, according to S&P.

S&P said it views the Resource Conservation Agreement as a credit positive for Midland Cogeneration, as it will mitigate the large fuel mismatch that the facility was faced with during the past year.

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