Fitch upgrades Reliant Energy debt

Fitch Ratings said it upgraded Reliant Energy, Inc.'s senior secured debt rating to BB/RR1 from BB-/RR2 and affirmed its B issuer default rating and B/RR4 senior subordinated convertible notes.

The ratings were removed from Rating Watch positive, where they were placed on Feb. 2, and the outlook is stable.

The agency said the upgrade of the senior secured debt is based on an updated recovery analysis that takes into consideration higher forward wholesale market prices, which have increased valuations for Reliant's merchant generation portfolio.

The B issuer default rating continues to reflect the uncertainty of operating cash flows generated by an unhedged merchant portfolio and a retail business facing increased competition, Fitch 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.