S&P puts Midwest Funding on watch

Standard & Poor's put Midwest Funding LLC on CreditWatch negative including its $774 million senior secured bank loan due 2004 at BB-.

S&P said the action follows its placement of Edison Mission Midwest Holdings Co.'s ratings on CreditWatch negative.

Edison Mission Midwest guarantees payment of lease obligations of its subsidiary, Midwest Generation LLC, which is the ultimate lessee of Collins Station. A portion of the lease payments is used to service Midwest Funding's debt.

S&P said it has concluded that the credit rating on the Midwest Funding notes is based on the creditworthiness of Edison Mission Midwest. Edison Mission Midwest unconditionally guarantees payments under the lease for as long as the Midwest Funding notes are outstanding.

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