S&P ups Reliant, Orion

Standard & Poor's said it raised the corporate credit rating of Reliant Energy Inc. and its subsidiaries Orion Power Holdings Inc. and Reliant Energy Mid-Atlantic Power Holdings LLC to BB- from B.

The agency said it also raised the rating on Reliant's secured debt facilities, consisting of the $500 million secured revolver, $250 million synthetic LOC facility and $667 million outstanding senior secured notes, to BB+ from BB- and affirmed the recovery rating on these facilities at 1.

In addition, S&P said it raised the rating on Reliant's $1.3 billion senior unsecured notes to BB- from B and affirmed the recovery rating at 3.

At the same time, the agency said it raised the rating on Reliant's subsidiary Orion's $400 million unsecured notes to BB+ from BB- while it also affirmed the 1 recovery rating on these notes and revised the outlook on Reliant and its subsidiaries to stable from positive.

S&P noted that the ratings revisions reflect the strong ongoing and expected improvement in Reliant's financial profile, credit-supportive financial policies, robust merchant market conditions and expectations for stable cash flow generation at Reliant's retail supply unit in Texas.

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