Moody's ups CenterPoint

Moody's Investors Service said it upgraded the long- and short-term senior unsecured debt ratings and supported obligations of CenterPoint Energy, Inc. to Baa3 from Ba1, along with its subsidiary CenterPoint Energy Resources Corp.'s senior unsecured ratings to Baa2 from Baa3.

The other ratings of CenterPoint were confirmed, along with subsidiary, CenterPoint Energy Houston Electric, LLC's Baa2 senior unsecured ratings.

The outlook for all three entities is stable.

These actions conclude a review for possible upgrade that began in March following a favorable ruling by the Texas Supreme Court on CenterPoint's appeal of the stranded cost true-up order that was issued by the Public Utility Commission of Texas, Moody's said.

The appeal period for this decision ended earlier this month when the court denied all motions for a re-hearing, paving the way for CenterPoint to file with the utility commission to recoup its award, the agency said.

The substantial cash proceeds that CenterPoint will receive will enhance the company's financial flexibility over the next few years, supporting an already improving trend in its fundamental credit profile, Moody's said.

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