S&P: Reliant settlement favorable

Standard & Poor's said that Reliant Energy Inc.'s (B+/stable/B-2) settlement with California, Washington State, and Oregon, the three California investor-owned utilities, and a number of other parties, is a favorable event for credit quality.

The agreement significantly eliminates legal and regulatory uncertainty for Reliant, the agency said. The settlement also eliminates the associated time and costs to defend the company against these allegations.

S&P said Reliant remains exposed to the criminal case, and estimates that the total cash impact of the settlement will be about $150 million pretax, which, while not insignificant, can easily be met with the company's available liquidity, either cash on hand or available credit facilities.

© 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.