Moody's may up CenterPoint

Moody's Investors Service said it placed under review for possible upgrade the ratings of the debt and supported obligations of CenterPoint Energy, Inc. (Ba1 senior) and its subsidiaries CenterPoint Energy Houston Electric, LLC (Baa2 senior) and CenterPoint Energy Resources Corp. (Baa3 senior).

The rating reviews follow the recent unanimous 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 court decided on several matters, most of them in favor of CenterPoint, and remanded the case to the commission for further proceedings.

The company now intends to file with the commission to seek recovery of $922 million pre-tax, plus interest, the agency said. This ruling is credit-positive for CenterPoint as it not only eliminates a longstanding contingent liability but also is expected to result in substantial cash proceeds.

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