S&P affirms Indiantown

Standard & Poor's said it affirmed the BB+ issue-level rating on Indiantown Cogeneration Funding Corp.'s senior secured debt and left the 3 recovery rating unchanged.

The outlook remains stable.

S&P's rating on Indiantown's $505 million of 1994 amortizing first mortgage bonds due 2020 and the parity $125 million of 1994 tax-exempt bonds due 2025 issued by the Martin County (Fla.) Industrial Development Authority on behalf of Indiantown Cogeneration LP is BB+. The recovery rating on the bonds is 3, indicating expectations of meaningful recovery (50%-70%) if a payment default occurs.

The ratings and stable outlook reflect the expectation that fuel costs in the near term will remain aligned with the fuel index used in energy cost reimbursement, although the risk of the continued mismatch exists, the agency said.

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