Moody's cuts CE Casecnan notes' view to stable

Moody's Investors Service said it changed to stable from positive the B2 rating outlook for CE Casecnan Water and Energy Company, Inc's (CE) senior secured notes.

The outlook change reflects Moody's expectation that the continuous water delivery deficit - between actual delivery and guaranteed delivery under the supplement agreement signed in September 2003 - and the corresponding deferred water delivery credit reimbursable to the National Irrigation Administration, will negatively impact CE's DSCR.

Moody's said it also considers the additional income tax liability and the uncertainties created by real property tax disputes in the provinces of Nueva Vizcaya and Nueva Ecija.

At the same time, the B2 rating recognizes that the CE project is fully operational and remains of strategic importance as it is part of the government's irrigation program, the agency noted.

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