Fitch affirms Orange Cogen notes

Fitch Ratings said it affirmed the BBB+ rating of Orange Cogen Funding Corp.’s $110 million ($52.8 million outstanding) senior secured notes due 2022.

“The rating is capped by the credit quality of Duke Energy Florida, LLC (DEF), the project's sole off-taker under a purchase power agreement (PPA) that extends until 2025, three years beyond the final maturity of the debt,” Fitch said in a news release.

“OC Funding's projected debt service coverage ratios (DSCRs) remain strong for the rating, averaging 3.38x under rating case conditions, and resilient to project stresses given the fixed capacity payments that comprise the bulk of the project's revenue base.”

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