Fitch Downgrades Juniper Generation to 'BB+'; Outlook Negative (Business Wire)

Thursday October 9, 12:29 pm ET CHICAGO--(BUSINESS WIRE)--Fitch Ratings has downgraded Juniper Generation, LLC's (Juniper) senior secured notes due 2014 to 'BB+' from 'BBB-'. The Rating Outlook is Negative. The downgrade reflects the anticipated reduction in Juniper's long-term financial performance once the California Public Utilities Commission (CPUC) implements the proposed revisions to the short-run avoided cost (SRAC) formula. While the rating downgrade is attributed to lower margins on energy sales, the Negative Outlook is based on Juniper's uncertain dispatch profile, which could result in lower output and potentially negative gross margins. Fitch has removed the Rating Watch Negative, which was assigned in June 2007. See Fitch's special report 'California's SRAC -- Anticipating the Overhaul' for a more detailed... [read full story]