S&P: AES Eastern unchanged

Standard & Poor's said its CC ratings on AES Eastern Energy LP's $550 million pass-through certificates are unchanged following the announcement that AES New York Surety LLC, an intermediate holding company of AEE, did not extend a forbearance agreement on its unrated $30 million letter-of-credit facility due July 2, and thereby defaulted on the facility.

Earlier, AES NY Surety had cured the nonrepayment by entering into a forbearance agreement through Oct. 6, initially, and then with an extension through Dec. 7, according to an S&P news release.

S&P said its ratings on AEE's $550 million pass-through certificates due 2029 continue to remain CC with a negative outlook. However, the agency said it does not expect the company to be able to meet its debt service obligation on the pass-through certificates on Jan. 2, when payments are due.

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