Moody's cuts Ameren Energy view to negative

Moody's Investors Service said it changed the rating outlook of Ameren Energy Generating Co. to negative from stable.

The agency also said it affirmed Ameren Corp.'s Baa3 senior unsecured rating, Union Electric Co.'s Baa2 issuer rating, Central Illinois Public Service Co.'s Baa3 issuer rating, Central Illinois Light Co.'s Baa3 issuer rating and Illinois Power Co.'s Baa3 issuer rating.

The negative outlook reflects low power prices and weak economic conditions in its region, which has negatively affected the company's margins, Moody's said.

As a result, the company's cash flow coverage metrics have declined over the last few years and prospects for improvement are almost completely dependent on a recovery of both power prices and the economy, which is not assured over the near to intermediate term, the agency said.

The negative outlook also reflects risks to the company from potential carbon controls and other environmental compliance mandates, Moody's said.

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