Fitch affirms Star Energy

Fitch Ratings said it affirmed Star Energy Geothermal (Wayang Windu) Ltd.'s long-term foreign-currency issuer default rating at B+, along with its $350 million senior secured notes due in 2015 at B+ with a recovery rating of RR4.

The outlook remains stable.

The affirmations reflect the company's strong track record of reliable operating performance, its base-load generation status and the long-term 'take or pay' energy sales contract, which underpins the company's stable and predictable recurring cash flows, Fitch said.

The ratings are constrained by the company's exposure to a single-site operation, the inherent risks of a geothermal operation in an active seismic area and the concentration risk of a sole electricity off-taker, PT Perusahaan Listrik Negara, the agency said.

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