S&P affirms Cogentrix Energy

Standard & Poor's said it affirmed its BB- corporate credit rating on Cogentrix Energy Inc.

At the same time, S&P said it affirmed it BB+ rating and 1 recovery rating on Cogentrix $700 million bank loan and $50 million revolving credit facility.

The agency added it affirmed its A+ rating on the company's $355 million 8.75% senior notes due on 2008 guaranteed by Goldman Sachs & Co.

The outlook is stable.

The company is a stand-alone subsidiary of The Goldman Sachs Group Inc. (A+/positive/A-1), the agency noted, adding that the BB- corporate credit rating on Cogentrix reflects the company's heavy, though decreasing, debt burden at the parent level which is structurally subordinated to debt at the company's operating projects and deteriorating distributions from some key subsidiaries, as well as its satisfactory business risk profile characterized by domestic, contractual generating projects, low operating risk and the benefits of non-recourse project financing.

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