S&P: Orange Cogen to positive

Standard & Poor's said it revised the outlook on Orange Cogen Funding Corp.'s $110 million senior secured bonds due 2022 to positive from stable.

The outlook revision reflects expectations that the project will likely continue to have strong debt service coverage after it replaces its fuel-supply and fuel-transportation contracts in a likely low gas price environment, S&P said.

The agency also said it affirmed the BBB rating on the project.

Orange Cogen is a wholly owned subsidiary of Orange Cogeneration LP, a wholly owned subsidiary of Northern Star Generation LLC.

The positive outlook reflects Orange Cogen's likely robust debt service coverage through debt maturity that factor in lower gas prices under the new replacement fuel supply and transportation agreements from 2015 and strong operational performance, the agency said.

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