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Prospect News home > News index > List of issuers R > Headlines for RRI Energy, Inc. > News item |
Fitch still may up RRI Energy
Fitch Ratings said it maintained the Rating Watch positive on RRI Energy Inc.'s issuer default rating of B, senior secured debt at BB/RR1, senior unsecured debt at B+/RR3 and short-term issuer default rating at B.
The ratings were placed on Rating Watch positive on April 12, following the announcement of a stock-for-stock merger with Mirant Corp. (B+/stable).
RRI's ratings reflect the challenging competitive generation environment expected for 2010 and 2011, tempered by steps taken by RRI to improve its balance sheet and hedge a portion of its commodity exposure, according to the agency.
RRI's liquidity position remains adequate and its business risk profile should improve, albeit slightly, following the closing of RRI's merger with Mirage, the agency said.
Concerns include the significant leverage and weak credit metrics at RRI and the generally poor operating environment for competitive generators, particularly those with significant concentrations of coal-fired generation, the agency noted.
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