S&P: AES Ironwood stable

Standard & Poor's said it changed the outlook on AES Ironwood LLC's $308.5 million senior secured bonds (currently $298.6 million outstanding) to stable from negative following the change of outlook by S&P on the ratings of The Williams Cos. (B+/stable/--) to stable from negative.

AES Ironwood is a 705 megawatt, combined-cycle, natural gas-fired generating station located in South Lebanon Township, Pa., that sells capacity and energy to Williams Power Co. Inc. (formerly known as Williams Energy Trading and Marketing Co.), a subsidiary of The Williams Cos. Inc., through a 20-year power purchase agreement.

S&P said the B+ rating on AES Ironwood's senior secured bonds reflects the Williams Cos.' credit risk as well as S&P's view of the plant's market price risk under a merchant scenario analysis. S&P concluded that, with revised market price assumptions given the prolonged depression in electricity markets, the project would not be able to meet debt service requirements under a pure merchant scenario in current market conditions.

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