Moody's cuts Reliant Energy to SGL-2

Moody's Investors Service said it changed the speculative-grade liquidity rating for Reliant Energy (Ba3 corporate family rating/on review for possible downgrade) to SGL-2 from SGL-1.

The revision in Reliant's SGL rating primarily reflects the company's recent decision to end its efforts to secure about $1.0 billion in additional financing, thereby eliminating a potential source of liquidity at a time when the company's overall liquidity needs continue to remain uncertain, the agency said.

The last rating action for Reliant was Sept. 29, when Moody's said it placed the Ba3 corporate family rating for Reliant Energy and the ratings of its subsidiaries, Orion Power Holdings and Reliant Energy Mid-Atlantic Power Holdings, on review for possible downgrade.

Moody's added that Reliant's near-term liquidity needs are unclear at this time, primarily due to the pending termination of a special retail collateral arrangement with Merrill Lynch.

© 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.