Moody's may downgrade Windsor

Moody's Investors Service said it placed on review for downgrade the Baa3 rating on Windsor Financing LLC's senior secured bonds due 2017 and the Ba2 rating on Windsor's subordinated secured notes due 2016.

The agency said the review for downgrade reflects the consistently lower-than-expected financial performance over the last 12 months resulting from three primary factors: lower coal quality, which resulted in operating inefficiencies; bottlenecks in the supply of coal, thereby increasing the level of replacement power purchases; and the higher-than-expected levels of dispatch.

The review will consider the degree to which Windsor expects to improve project operations, how Windsor can better manage exposure to fuel supply quality and fuel shortfalls, the potential implications of increased maintenance costs resulting from the use of lower-than-expected coal quality and what the company's future financial performance is likely to be, Moody's said.

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