Moody's ups Paiton Energy to B1

Moody's Investors Service said it upgraded the senior secured rating of Paiton Energy Funding BV, the obligations of which are guaranteed by PT Paiton Energy Co., to B1 from B3.

The outlook is positive.

The rating action reflects the rise in Paiton's debt service coverage ratio - from less than 1.2x in 2005 to 1.48x in 2006 - and an expectation that higher ratios will be maintained, as debt is gradually repaid, Moody's said.

In addition, Paiton has maintained a stable operational performance since it restructured its power purchase agreement in 2003 and kept the availability factor of its plant above 90% over the past three years, the agency added.

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