Moody's rates TPF loan Ba3

Moody's Investors Service said it assigned a senior secured rating of Ba3 to TPF II LC, LLC's proposed $180 million term loan due 2014 and $40 million working capital facility due 2014.

The outlook is stable.

The rating reflects the relatively high business risk associated with simple-cycle natural gas peaking assets with high marginal costs as demonstrated by heat rates at about 12,000 Btu/kWh, Moody's said.

This risk is offset by the benefits provided by capacity contracts that partially support the cash flows during the early years, the agency said.

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