Outlook for Coso Geothermal Power Holdings Remains a Concern (Yahoo! Finance)
Fitch Ratings has affirmed the rating on Coso Geothermal Power Holdings LLC's (CGP) $629 million ($492 million outstanding) pass-through certificates due 2026 at 'CC'. The ratings affirmation reflects the continued expectation that default is probable, as operating cash flows and reserve funds will be insufficient to meet long-term financial obligations.
Coso has been unable to reverse a steady decline in geothermal resource output, and reduced cash flow was insufficient to meet the debt portion of the most recent lease rent payment in January 2013. Approximately $33.6 million of operating cash flow went toward the $43.4 million January payment and the $9.7 million shortfall was drawn from the letter of credit-funded senior rent reserve.
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