S&P: MACH Gen view stable

Standard & Poor's said it affirmed the BB- rating on MACH Gen LLC's $100 million first-lien revolving working capital facility due February 2012 and $60 million first-lien synthetic letter of credit facility due February 2013 with a 1 recovery rating on the first-lien senior secured debt obligations, which reflects an expectation of 90% to 100% recovery in the event of a default.

The outlook was revised to stable from positive.

The rating reflects a significant decrease in first-lien leverage following repayment of the first-lien term loan in late 2008, tempered by steadily increasing second-lien payment-in-kind debt, S&P said.

The change in outlook is a result of the project cash collateralizing its first-lien synthetic letter of credit facility at a slower rate than anticipated after the project repaid the first-lien term loan, S&P said.

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