Moody's cuts Paiton Energy view to stable

Moody's Investors Service said it changed to stable from positive its outlook for the B1 senior secured rating of Paiton Energy Funding BV, the obligations of which are guaranteed by PT Paiton Energy Co.

The change in outlook reflects the inherent risks and uncertainties evident in Paiton's large expansion plan, which involves the building, ownership and operation of coal-fired power project costing an estimated $1.450 billion, Moody's said. The financing structure for the expansion is now being negotiated and the impact on existing lenders remains uncertain, the agency added.

The rating reflects the company's stable operational performance since it restructured its power purchase agreement in 2003, Moody's said, while it has kept the availability factor of its plants above 90% over the past three years.

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