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S&P lowers AmerenEnergy to BB
Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on AmerenEnergy Generating Co. to BB from BBB-. The outlook on GenCo is negative.
The agency said it assigned a 3 recovery rating to GenCo's senior unsecured debt, indicating expectations of meaningful recovery in the event of payment default.
At the same time, the agency said it affirmed its BBB- corporate credit ratings and positive outlook on Ameren Corp. and its other subsidiaries, Ameren Illinois Co. and Ameren Missouri.
S&P said the BB corporate credit rating on GenCo reflects its view that Ameren Corp.'s long-term economic incentive to support GenCo has weakened due to the sharp decline in forward power pricing. Furthermore, the parent company's recent decision to reduce its capital spending at GenCo by decelerating construction on the Newton Energy Center scrubber project reinforces S&P's view that management's support for the merchant business is limited, the agency said.
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