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Prospect News home > News index > List of issuers F > Headlines for FirstEnergy Solutions Corp. > News item |
S&P lowers FirstEnergy, notes
S&P said it lowered the corporate credit rating on FirstEnergy Solutions Corp. to B from BB- and placed the rating on CreditWatch with negative implications.
S&P also downgraded its secured and unsecured note ratings on the company to BB- from BB+ and B from BB-, respectively, and placed them on CreditWatch with negative implications. The recovery rating of 3 on the unsecured debt is unchanged, reflecting an expectation of meaningful (50%-70%; lower end of the range) recovery in the event of default.
S&P said the downgrade and CreditWatch placement stem from the recent announcement of the potential sale (or transfer) of certain assets of Allegheny Energy Supply LLC and the recent discussion of a potential medium term restructuring.
The agency had previously consolidated the financial information of FirstEnergy Solutions and Allegheny Energy Supply (together the Competitive Energy Supply (CES) business) because it considered the latter to be a core affiliate.
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