Moody's confirms Ameren

Moody's Investors Service confirmed the long-term debt ratings of Ameren Corp., including Ameren's A3 senior unsecured debt and bank loan ratings and its A3 issuer rating. The outlook is stable.

Moody's said this rating action concludes the review of Ameren's long-term ratings that was initiated on Feb. 4 in connection with Ameren's agreement to purchase Illinois Power Co. from Dynegy Inc.

The confirmation of Ameren's ratings reflects the large amount of equity issued in advance to finance the Illinois Power acquisition, Ameren's plans to quickly reduce the high level of debt at Illinois Power, Ameren's successful track record with regard to prior utility acquisitions in Illinois and the strong and stable financial performance of Ameren's other utility subsidiaries, Moody's said.

Moody's said the ratings confirmation also reflects management's conservative financial policies, the company's strong balance sheet and the modest level of debt obligations at the Ameren parent company level. These positive factors balance the risks associated with the acquisition of Illinois Power, which will initially have high leverage and low consolidated coverage ratios.

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