S&P ups Reliant

Standard & Poor's said it raised its rating on Reliant Energy's secured debt facilities to BB- from B while the recovery ratings on these facilities was raised to 1 from 3.

The agency said that these facilities consist of $750 million senior secured notes, $500 million senior secured revolver and $250 million synthetic letter of credit facility.

The revised ratings follow a review of the recovery ratings on Reliant's secured debt and do not reflect a review of, or any change in, the B corporate credit rating on Reliant, which remains unchanged, S&P noted.

The agency said that the refinancing of secured debt with unsecured debt in 2007, reduction in the size of secured revolver at Reliant and paydown of the senior secured notes all contributed to higher recovery on the secured debt.

The B corporate credit rating on Reliant Energy reflects the consolidated credit profiles of the company's retail electricity supply operations, conducted through Reliant Energy Retail and wholesale electricity generation operations, conducted through Reliant Energy Mid-Atlantic Power Holdings LLC and Orion Power Holdings Inc., the agency added.

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