Moody's: Panoche to negative

Moody's Investors Service said it affirmed Panoche Energy Center's Baa3 senior secured ratings and revised the outlook to negative.

The outlook change reflects delays in implementing a permanent solution to Panoche's wastewater discharge that is resulting in an approximate $1.8 million annual increase in operating expenses and subsequent weaker financial performance at the project, Moody' said.

The affirmation recognizes the predictable cash flows and the addition of a $5.5 million availability reserve letter of credit, which remains in place in addition to a six-month debt service reserve letter of credit, the agency said.

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