CMS Energy Corp. got encouraging news from Moody’s Investors Service on Wednesday, when the ratings agency assigned “B2” ratings to its new secured bank credit facilities. The ratings, said Moody’s, reflect not only the ongoing nature of the stressed financial profile of the company, but the “significant progress” made to execute its asset sales strategy.

Moody’s analysts said the financial flexibility of its transactions has “resulted in reduced liquidity pressure,” further augmented when it suspended its common stock dividend. “Further, we anticipate that the clarification of auditing issues surrounding prior years’ annual financial statements will allow access to the public debt capital markets and that [subsidiary] Consumers Energy will continue to be somewhat insulated from the financial stress at CMS Energy.”

Moody’s also gave CMS a stable rating outlook, which “reflects our expectation that the financial plan devised by CMS will ease the pressures associated with its debt burden over the intermediate term and that its strategic plan, when fully implemented, will result in an organization dominated by a regulated utility with significant gas and electric assets.”

The ratings agency added that its assessment of the Michigan-based utility “could be negatively impacted by the financial implications of decisions in judicial or regulatory proceedings resulting from investigations and inquiries into the company’s energy trading practices and shareholder lawsuits” as well as if it falls behind in its asset sales and balance sheet improvement.

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