Fitch: Reliant unchanged

Fitch Ratings said that the filing for bankruptcy protection by Reliant Energy Inc.'s Channelview subsidiaries does not affect the company's ratings (issuer default rating B) or stable outlook.

The agency said that the project had never generated dividends for Reliant because the conditions for distribution in its debt covenants were never met.

Therefore, the bankruptcy has no effect on the cash flow supporting debt at the Reliant level and the Channelview asset did not guarantee any of Reliant's secured debt, although Fitch said it did consider the residual value of the plant in its recovery analysis.

Reliant Energy's ratings include an issuer default rating of B, senior secured debt BB/RR1 and senior unsecured debt B+/RR2.

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