Moody's cuts Coso certificates

Moody's Investors Service said it downgraded Coso Geothermal Power Holding's pass-through trust certificates to Caa1 from B2. The outlook remains negative.

The agency said the rating action reflects multiple continuing challenges at Coso both in the near and longer term that is likely to ultimately result in a default on Coso's rated debt obligations.

Moody's said the core challenge facing Coso remains energy production substantially below original expectations. The lower production has resulted in significantly lower cash flow and fixed charge coverage ratios below 1 times.

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