Moody's cuts AES Red Oak bonds to negative

Moody's Investors Service said it has revised the outlook on AES Red Oak, LLC's B1 rated senior secured bonds to negative.

The outlook reflects the anticipated narrowing of the project's liquidity position following the upcoming maturity of both of its working capital lines of credit on Aug. 11 and the implications of this for the project's ability to afford a significant expected increase in capital expenditures in 2010, the agency said.

Both of the project's lines of credit are currently fully drawn and at this point, neither of those lines is expected to be renewed prior to its maturity, the agency added.

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