Fitch upgrades CenterPoint

Fitch Ratings said it upgraded CenterPoint Energy, Inc.'s issuer default rating, senior notes and pollution control revenue bonds to BBB from BBB-, upgraded its secured pollution control revenue bonds to A from A-, affirmed its short-term issuer default rating and commercial paper at F3 and assigned a BB+ rating to its junior subordinated debenture (ZENS).

The agency upgraded CenterPoint Energy Houston Electric's issuer default rating to BBB+ from BBB, its first mortgage bonds, secured pollution control revenue bonds and general mortgage bonds to A from A- and its credit facility to A- from BBB+ and affirmed its short-term issuer default rating at F2.

Fitch also affirmed CenterPoint Energy Resources Corp.'s issuer default rating and senior notes at BBB and downgraded its short-term issuer default rating and commercial paper to F3 from F2.

The outlook is stable.

The agency said CenterPoint's ratings and outlook primarily reflect the consistent progress that has been made in improving financial flexibility and reducing consolidated leverage. The company has used about one-third of its true-up proceeds to reduce debt by about $600 million this year, and Fitch expects it to use the remaining proceeds in a balanced mix of transactions or investments, including additional debt reduction, capital expenditure in existing businesses, growth investments and/or merger and acquisition transactions in the non-regulated operations.

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