Moody’s Investors Service Thursday downgraded the senior unsecured debt ratings of NGPL PipeCo LLC, parent of Natural Gas Pipeline Co. of America (NGPL), to junk status (Ba1) from the lowest investment grade (Baa3) following FERC’s approval of a settlement of allegations that NGPL over-recovered its cost of service.
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Kerr-McGee to Spin Off or Sell Chemical Unit, Blasts Icahn Proposal
Kerr-McGee Corp. said Tuesday that it has authorized management to proceed with a proposal to either spin off or sell its chemical business, and the board authorized a share repurchase initially set at $1 billion, which may be expanded after the chemical unit is sold or spun off. The company also blasted a proposal by financier and shareholder Carl Icahn, who called on the company to set up a volumetric production payment (VPP) transaction for 250 million boe.
Aquila Credit Rating Nudged Upward
Although its credit ratings remain in the “junk” category, Aquila Inc. received some welcome news Wednesday from Standard & Poor’s Ratings Services (S&P) after it upgraded the Kansas City, MO-based company’s corporate credit rating to “B-” from “CCC+” and removed it from CreditWatch. The outlook remains negative.
Dynegy Launches Tender Offer, Stock Restructuring with ChevronTexaco
Dynegy Inc. on Tuesday launched a major junk bond refinancing project, as well as a long-awaited stock restructuring to pay off a credit line with ChevronTexaco Inc., its largest shareholder. If the transactions are completed as envisioned, Dynegy’s debt maturities would be “significantly” reduced over the next few years, including a portion of its recently restructured $1.66 billion credit facility and the secured financing of its Midwest generation assets.
S&P Drops Mirant’s Rating on Debt Restructuring Plan
Standard & Poor’s Ratings Services (S&P) dropped Mirant Corp. ratings lower into junk territory Tuesday, following on the company’s announcement late Monday of a debt restructuring plan that it said also could serve as a pre-packaged Chapter 11 bankruptcy filing if lenders did not cooperate. S&P cut the corporate credit rating and senior unsecured debt ratings on Mirant and its subsidiaries to ‘CCC’ from ‘B’.
S&P Maintains TXU Corp.’s Ratings, Drops Euro Unit on Liquidity Pressures
TXU Europe Ltd. and its European subsidiaries was downgraded to one level above “junk” status Thursday by Standard & Poor’s Ratings Services (S&P), which may drop the TXU Corp. subsidiary below investment grade “in the very near future.” S&P’s action followed that by Moody’s Ratings Service on Wednesday and Fitch Ratings last Friday. S&P did not drop the corporation’s credit rating, however.
Moody’s Drops Aquila to Junk on Poor International Returns, Debt
Reflecting an expectation that planned asset sales will occur, Aquila Inc. retained a “stable” ratings outlook but had its debt downgraded to below investment grade by Moody’s Investors Service on Tuesday. In response, the Kansas City-based company said it was “prepared to respond to the potential effects” the downgrade to “Ba2” could bring.
Edison Mission Energy Downgraded to Junk by S&P
As its affiliated utility works to restore an investment-grade credit rating, Edison International’s merchant energy operator, Edison Mission Energy (EME), was moving in reverse last week, attracting a below-investment-grade credit downgrade from Standard & Poor’s (S&P) Wednesday on the heels of Tuesday’s second-quarter report of a loss for its power plant operations. Ironically, uncertainty regarding the California Public Utilities Commission’s future oversight of the Edison utility was cited as a prime reason for the downgrade.