Fitch Rates CE Generation Lower Because of Reduced Revenue from Imperial Valley Geothermal Projects (Reuters)
Fitch Ratings has downgraded CE Generation LLC's (CE Gen) $400
million senior notes ($169 million outstanding) due 2018 to 'BB-' from 'BB+.'
The downgrade reflects Fitch's long-term expectation for reduced cash flow due
to lower energy revenues earned at the portfolio's geothermal projects.
CE Generation owns and operates ten geothermal facilities in the Imperial Valley of California. It is equally owned by MidAmerican Geothermal, LLC, an indirect wholly owned subsidiary of MidAmerican Energy Holdings Company and TransAlta (CE GEN) USA, Inc. , a wholly-owned subsidiary of TransAlta Corporation.
The Rating Outlook has been revised to Negative from Stable due to the potential
for worse financial performance if the current low energy pricing environment
persists over the next two years.
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