Rating

J.P. Morgan Securities downgraded El Paso Corp. to “underweight” from “neutral” on Monday, citing “significant concerns” regarding its oil and natural gas production. The downgrade sent El Paso’s shares tumbling nearly a dollar, or 8.23% by market close.

Moody’s Investors Service on Wednesday downgraded the long-term debt ratings of the Royal Dutch/Shell Group of companies to “Aa1” from “Aaa,” following a review that began when the oil giant announced a 20% cut to its proven oil and gas reserves.

Moody’s Investors Service on Wednesday downgraded the long-term debt ratings of the Royal Dutch/Shell Group of companies to “Aa1” from “Aaa,” following a review that began when the oil giant announced a 20% cut to its proven oil and gas reserves.

Dynegy Inc. and its subsidiaries received welcome news from Moody’s Investors Services on Thursday that their credit rating outlook improved to “developing” from “negative.” The action followed the Houston-based company’s announced refinancing and restructuring plans earlier this week (see Daily GPI, July 16).

Although it won’t boost its still-sagging credit rating, Nevada Power Co.’s financial push last week drew a positive response for Standard & Poor’s Ratings Services (S&P) last Wednesday when it labeled as a “positive development” the utility’s new short-term credit facility with Merrill Lynch. It provides additional liquidity this summer for Nevada Power, one of two private-sector electric utilities under Reno, NV-based Sierra Pacific Resources.

Although there are lingering risks, San Diego, CA-based Sempra Energy received a boost in its outlook Wednesday from Credit Suisse First Boston (CSFB). Analysts at CSFB predicted that the company will “outperform” previous estimated earnings and stock prices in 2003.

At literally the eleventh hour, Reliant Resources Inc. (RRI) last week successfully completed a $6.2 billion financing package to refinance $5.9 billion of existing bank credit facilities with new ones that won’t mature until 2007. The lenders also provided the cash-poor company a $300 million line of credit, which matures in 2004.

The financial storm enveloping Aquila Corp. — cuts in its credit rating to below investment grade, forced asset sales, restructuring of its operations and widespread federal investigations into its trading — will have “possible negative impacts” on the company’s regulated natural gas distribution facilities and power utilities in Missouri, but an immediate rate hike doesn’t appear to be in the cards for customers, according to a Missouri Public Service Commission staff report.

The financial storm that enveloped Aquila Corp. this year — cuts in its credit rating to below investment grade, forced asset sales, restructuring of its operations and widespread federal investigations into its trading — will have “possible negative impacts” on the company’s regulated natural gas distribution facilities and power utilities in Missouri, but an immediate rate hike doesn’t appear to be in the cards for customers, according to a Missouri Public Service Commission staff report.