TEXT-S&P release on Indiantown Cogeneration Funding Corp

(The following statement was released by the ratings agency)

Oct 24 - Standard & Poor's Ratings Services today affirmed the 'BB+' rating
on Indiantown Cogeneration Funding Corp.'s (Indiantown Cogen) $505 million
first mortgage bonds due 2020 and the 'BB+' rating on Indiantown Cogeneration
L.P.'s $125 million tax-exempt bonds due 2025. Standard & Poor's also removed
the ratings from CreditWatch with negative implications. The outlook is
negative.

The ratings were placed on CreditWatch with negative implications on May
15, 2007, following Cogentrix Energy Inc.'s (CEI; BB-/Stable/--) announcement
of its intention to sell its equity interest in 14 of 18 power plants,
including its 100% equity interest in Indiantown Cogen. Indiantown Cogen is a
330 MW pulverized-coal-fired cogeneration facility in Martin County, Fla. The
ratings affirmation and resolution of the CreditWatch listing follows CEI's
sale of 80% of its equity interest to United States Power Fund III L.P., a
private equity fund managed by Energy Infrastructure Fund (EIF), while
retaining a 20% interest in the assets.

Standard & Poor's is satisfied that CEI's 20% figure is material enough to
keep its interests independent of those of EIF. The likelihood that the owners
will agree to voluntarily file the project for bankruptcy for
non-project-related reasons is remote, and Indiantown Cogen's 'BB+' stand-alone
credit rating is therefore not constrained by the credit rating of its owners.

The negative outlook on Indiantown Cogen primarily reflects the continued
potential for a mismatch between energy revenues and fuel costs.

"The outlook could be revised to stable if no further deterioration in debt
service coverage ratios occurs due to insufficient energy revenue," noted
Standard & Poor's credit analyst Chinelo Chidozie. "However, an upgrade is
unlikely, unless the project reaches an agreement with Florida Power & Light
Co. that would provide a long-term resolution to the energy revenue/fuel cost
mismatch issue," she continued.