S&P: Ameren event credit neutral

Standard & Poor's said Thursday that Ameren Corp.'s (A-/negative/A-2) recent settlement with various parties related to Illinois Commerce Commission's approval for Ameren to acquire Illinois Power Co. (B/Watch positive/--) is credit neutral.

Key issues resolved include recovery of $67 million of reorganization costs over four years beginning in 2007, modification of Illinois Power dividend restrictions, and an asbestos cost rider following 2006, after the company first recovers costs in base rates.

With just the commission and SEC approvals remaining, the transaction is expected to close by year-end, S&P said.

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