S&P ups Midland Cogeneration Venture

S&P said it raised the rating on Midland Cogeneration Venture Debt LP’s senior secured notes due March 2025 to BB+ from BB.

The upgrade follows the agency completing its review of Midland under its revised project finance criteria and sector-specific project finance methodology.

“Under the revised criteria, the forecasted minimum debt service coverage ratio (DSCR) of around 1.26x (occurring in the last 12 months ending March 2025) maps to a higher preliminary stand-alone credit profile, and we view the business risk unchanged. About 90% of gross margins come from capacity payments from investment grade off-takers with no price or dispatch risk. Midland contracted up to 1,240 megawatts (MW) of the asset's energy and capacity to Consumers Energy Co. through a power purchase agreement (PPA) that expires in 2030,” S&P said in a press release.

The outlook is stable.

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