Moody's cuts Coso certificates

Moody's Investors Service said it downgraded Coso Geothermal Power Holding LLC's passthrough trust certificates to B1 from Ba1.

The outlook remains negative.

The agency said the rating action reflects the lack of improvement in total energy production and increasing gap between originally forecasted power production relative to actual power production. For the last 12 months ended in September, total generation was 26% below original forecasts.

The negative outlook considers uncertainties about the project's ability to sustain its current levels of generation, uncertainties regarding its sponsor's continued willingness to contribute additional capital and forecasted debt service coverage marginally around 1 times in 2011, Moody's said.

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