S&P: Salton Sea unaffected

Standard & Poor's said the recent announcement by Salton Sea Funding Corp. that management decided to cease operations of the zinc recovery project would not affect the BB+/stable ratings on Salton Sea's senior secured debt.

S&P said it did not expect the zinc project to generate any positive cash flow in the near-term. MidAmerican Energy Holdings Co. (BBB-/positive/--) had covered losses generated by the zinc project.

MidAmerican Energy Holdings expects to make cash expenditures of about $13 million, which may be partially offset by proceeds from sales of the Zinc Recovery Project's assets.

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