Fitch: PPL outlook negative

Fitch Ratings said it affirmed the BBB rating of PPL Montana, LLC's passthrough trust certificates due 2020.

The outlook was revised to negative from stable due to a revised expectation of lower merchant power prices and the project's potentially heightened exposure to merchant power sales due to the bankruptcy filing of a key counterparty, Fitch said.

The company partially mitigates merchant risk by selling power through medium-term power purchase agreements and short-term hedges, Fitch said.

The project also benefits from a history of solid operating performance and maintains a consistent operating cost profile, the agency added.

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