S&P: Reliant Energy on watch

Standard & Poor's said it placed its B+ corporate credit ratings on Reliant Energy Inc. and two of its subsidiaries, Orion Power Holdings Inc. and Reliant Energy Mid-Atlantic Power Holdings LLC, on CreditWatch with negative implications.

The agency said the rating action follows the company's poorer than expected third quarter results, its weak prospects for ongoing cash in 2006 and the uncertainty of the retail business model in 2007 and beyond.

The performance and results of Reliant's hedging strategy on its wholesale operations in the PJM region is disappointing, especially in a period of relatively high wholesale prices, S&P noted.

© 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.