S&P lowers Wolf loan

Standard & Poor's said it lowered its rating on Wolf Hollow I LP's $260 million senior secured bank facility and $30 million working capital facility to B+ from BB-.

The $260 million senior secured bank debt consists of a $156 million senior secured bank facility and a $104 million of synthetic letters of credit, the agency said, adding that it lowered its rating on the $110 million second-lien senior secured term loan to B- from B.

The outlook is stable.

According to S&P, the downgrades come after an extended period during which the project was on negative outlook due to a combination of operating problems.

Although plant performance has improved for the project over the past few months following a forced outage in June 2007, operating and major maintenance reserve levels remain low, the agency added.

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