Moody's rates GenOn loans B2, notes B3

Moody's Investors Service assigned a B2 rating to GenOn Energy's senior secured $1 billion revolving credit facility and $500 million term facility.

These facilities are being issued directly by the parent holding company, which is known as RRI Energy (B2/stable). They are expected to close with the completion of the proposed merger between RRI and Mirant Corp. (B1/stable).

Moody's assigned a B3 rating to $1.4 billion of senior unsecured notes to be issued by a temporary subsidiary of Mirant (GenOn Escrow).

The credit facilities to be issued at GenOn Energy will benefit from upstream payment guarantees provided by assets and subsidiaries of RRI and Mirant, but Mirant upstream guarantees could be impacted by indenture limitations existing within the Mirant standalone capital structure, according to the agency.

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