S&P: Indiantown bonds BBB-, BB

Standard & Poor's said it assigned its BBB- debt rating to Indiantown Cogeneration LP's current $209 million first mortgage taxable bonds due 2020.

The outlook is stable.

S&P also assigned its BB debt rating to Indiantown's proposed $128 million subordinated notes due 2025

The agency said the senior debt rating reflects a good business profile supported by contractual cash flow for the tenor under operating requirements that are achievable, but impaired by a potential mismatch between fuel cost and reimbursement amounts, combined with financial debt service coverage ratio performance that is above peers at the same rating level.

"The subordinate debt rating reflects subordination in payment of principal and interest after senior debt service and reserve top off," S&P credit analyst Nora Pickens said in a news release.

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