S&P affirms Kiowa, Tenaska

Standard & Poor's said it affirmed the BBB- rating on Kiowa Power Partners LLC's $642 million senior secured bonds due in 2013 and 2021.

The agency also said it affirmed the BB- rating on Tenaska Oklahoma I LP's $73.5 million senior secured bonds due 2014. Tenaska Oklahoma pays debt with distributions from Kiowa Power.

The outlook on both ratings is negative.

The ratings reflect a view that the project now has greater certainty regarding its property tax assessment, S&P said.

This year, the company resolved a property tax valuation dispute on the generation facility with the county, settling on taxation levels for 2009 through 2011 based on an average property value of $419 million, the agency said.

This results in taxes that average about 230% of the original forecast for the disputed years. S&P said it assumes that the property will continue to be valued at this level.

© 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.