Moody's cuts Dynegy

Moody's Investors Service said it downgraded the corporate family rating and probability of default rating of Dynegy Holdings, Inc. to B3 from B2, along with the speculative grade liquidity rating to SGL-4 from SGL-3. The agency also said it confirmed the B3 rating on the company's senior unsecured notes. The downgrade concludes a review that began in April.

The outlook for Dynegy Holdings and its parent, Dynegy Inc., is negative.

The downgrade reflects the weak financial metrics anticipated for 2010 based upon the company's 2010 EBITDA guidance, due principally to reduced power margins, Moody's said.

The projected credit metrics for 2010 and 2011 appear to be quite weak and more appropriately positioned toward the low "B" ratings category for unregulated power companies, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.