S&P lowers TPF II LC

Standard & Poor's said it lowered its rating on TPF II LC LLC's $205 million in first-lien facilities to B- from B+.

The facilities consist of a $165 million seven-year senior secured term loan and a $40 million revolving facility, both of which mature in 2014.

The recovery rating on the secured facilities is 1, indicating 90% to 100% expected recovery in a default.

The outlook is negative.

The negative outlook reflects a view that reduced revenue earned from merchant energy and a drop in capacity prices will leave the project with insufficient cash from operations to cover mandatory debt service beginning in 2012, S&P said.

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