Bangkok--16 Apr--Standard & Poor's
Standard & Poor's Ratings Services has revised its outlook on the City of Portland, Ore.'s hydroelectric power revenue refunding bonds series 2006, issued for Portland Hydroelectric Power, to negative from stable. At the same time, Standard & Poor's affirmed its 'BBB+' underlying rating on the bonds.
"The outlook revision reflects the negative outlook on Portland General Electric Co.," said Standard & Poor's credit analyst Peter Murphy.
Under a take-or-pay power sales agreement, Portland General (BBB+/Negative/A-2) must pay all costs of the city's Bull Run River hydroelectric project, including debt service on the bonds. As of June 30, 2008, the project had approximately $18.6 million in debt outstanding.
The city owns the project and its Bureau of Hydroelectric Power operates it, through the City of Portland Hydroelectric Power Fund. The project includes two hydroelectric powerhouses at two adjacent dams on the Bull Run River, for a combined capacity of 36 megawatts.
RELATED RESEARCH
USPF Criteria: "Electric Utility Ratings," June 15, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Peter V Murphy, New York (1) 212-438-2065
Paul Dyson, San Francisco (1) 415-371-5079