Fitch lifts OrCal to stable

Fitch Ratings said it affirmed OrCal Geothermal LLC's $165 million senior notes due in 2020 at BB.

The outlook also was revised to stable from negative due to sustained improvements in operational performance, Fitch said.

The ratings reflect an expectation of stable operations of OrCal's geothermal projects under long-term revenue contracts with some exposure to index-based price risk, the agency said.

The ratings also consider that stable resource production remains dependent on sponsor-funded discretionary capital expenditures, Fitch said.

The outlook revision was due to recent improved production levels and overall plant efficiency, the agency explained.

But the absence of substitute fuel supply leaves OrCal exposed to the risk of declining geothermal resource production, Fitch added.

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