Fitch rates OrCal notes BBB-

Fitch Ratings said it expects to assign a rating of BBB- to OrCal Geothermal Inc.'s proposed $165 million senior secured notes due 2020.

Proceeds will be used to repay existing project debt, and project sponsors do not expect to receive a distribution from the issuance proceeds, the agency said.

The rating is supported by OrCal's solid track record of reliable operating performance, stable geothermal resource and competitive position as a low-cost producer of electricity.

These are offset by OrCal's exposure to market price volatility, as a significant portion of revenues are indexed to natural gas prices; the uncertain outcome to the company of the expiry of the fixed energy price period in April 2007 and dependence on projected financial performance on the successful operation of the Gould project by parent Ormat Nevada Inc., the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.