OREANDA-NEWS. S&P Global Ratings today affirmed its 'BBB+' rating on Orange Cogen's $110 million senior secured bonds due 2022. The outlook has been revised to negative from stable. The negative outlook is driven by the project's bank, Deutsche Bank Trust Co. Americas (BBB+/Negative), whose outlook was downgraded to negative in July, 2016. The rating on the project is weak-linked to the rating on Deutsche Bank Trust Co. Americas because the replacement provision in the project agreement doesn't fully comply with our financial counterparty criteria.

Orange Cogen Funding Corp. is a subsidiary of Orange Cogeneration L. P., the owner of a 104 megawatt (MW) gas-fired cogeneration power plant in Bartow, Fla. that began commercial operation in 1992. Orange Cogeneration is wholly owned by Northern Star Generation LLC (NSG) through its subsidiary NSG Holdings LLC. With the expiration of the power purchase agreement with Tampa Electric Co. (TECO) in 2015, Orange Cogen sells 100% of its electricity under a power purchase agreement (PPA) with Duke Energy Florida (DEF) that expires in 2025. The project also sells steam to offtakers Peace River and Bartow Ethanol above the requirement to maintain qualifying facility (QF) status.

The negative outlook reflects the linkage to the project's bank, Deutsche Bank Trust Co. Americas (BBB+/Negative), because its replacement provision does not fully comply with our financial counterparty criteria. We downgraded our outlook on Deutsche Bank Trust Co. Americas to negative in July 2016.