...- After weak power and capacity prices in 2018 and early 2019, we expect a gradual recovery in the second half of 2019, in line with forward curve projections and recent summer capacity auctions. - We are affirming our '##-' debt ratings on EFS Cogen Holdings I LLC (EFS Cogen). - We are, however, lowering our recovery rating on the company's debt to '2' from '1', as we now believe that there will be slightly more outstanding debt in a default scenario than we did in our previous review. - The stable outlook reflects our expectations that EFS Cogen spark spreads will gradually increase in the upcoming few years, and that capacity prices in Zone J will recover from their recent low prices in the past winter. We expect capacity factors of around 70%, and the project to achieve a minimum debt service coverage ratio (DSCR) of around 1.45x in 2019 (12-month trailing), increasing thereafter with an average of above 2x....
