S&P cuts Terra-Gen, loan

Standard & Poor's said it lowered its corporate credit rating on Terra-Gen Finance LLC to B from BB-. The outlook is stable.

The agency said it also lowered its rating on the company's $250 million secured term loan due 2017 and secured $60 million working capital facility due 2016 to B+ from BB.

The agency removed the ratings from CreditWatch negative, where they were placed on June 29. The outlook is stable.

S&P said the rating action reflects its view that the credit measures have fallen below levels that support the current rating. The agency said this deterioration stems from an error in S&P's original analysis and significant reductions in short-run avoided costs that dictate project payments under four of the power purchase agreements at TG Finance's portfolio of nine power projects.

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