Standard

Merger/acquisition target NorthWestern Corp., the Sioux Falls, SD-based utility holding company, received a boost in its credit ratings to “BB+” by Standard & Poor’s Ratings Services Friday, while the rating agency kept its CreditWatch with a “developing implications” designation.

Standard & Poor’s Ratings Services last Friday affirmed the “BB+” corporate credit rating of Spokane, WA-based Avista Corp, citing the stability of the company’s utility operations as the primary reason. The outlook is stable, and both the rating and outlook also take into account Avista’s higher-risk energy trading and other nonutility operations, S&P said.

Historic high energy prices have Standard & Poor’s Ratings Services raising different issues for the natural gas and coal sectors, according to previews Thursday of special “CreditWeek” reports scheduled to be released next week. For natural gas, the over-concentration of critical infrastructure in the Gulf of Mexico region has been exposed; and for coal, financial and business-risk vulnerability are surfacing despite an 18-month steady run-up in prices, S&P said.

Referencing a standard 30-year normal (1971-2000), WSI Corp. said this week that its forecast for the October-December period is expected to average cooler-than-normal temperatures in the northwestern quarter of the country with warmer-than-normal temperatures elsewhere. If proven true, the forecast could alleviate natural gas supply and storage concerns entering the 2005-2006 winter.

Standard & Poor’s Ratings Services (S&P) has lowered the corporate credit rating on Cheniere Energy Inc. one notch, to “B” from “B+” to reflect a ring-fencing structure around Cheniere LNG Holdings LLC, a newly formed, indirect subsidiary that will own 100% of the interests in the Sabine Pass liquefied natural gas (LNG) terminal in southwest Louisiana and 30% interest in the Freeport, TX LNG terminal.

FERC on Tuesday terminated a standard market design (SMD) notice of proposed rulemaking (NOPR) proceeding, bringing to a close an effort first launched in 2002 by the federal agency. The SMD effort was championed by then-FERC Chairman Patrick Wood, but came under fire from various energy sector quarters and faced stiff resistance from certain lawmakers in the U.S. Congress.

Standard & Poor’s (S&P) raised the credit rating on El Paso Corp. and its subsidiaries to “B” from “B-” and on El Paso Energy Credit Corp. to “B+” from “B” which “recognizes the considerable progress that the company has made in reducing exposure to unregulated operations and improving liquidity.” The company’s outlook is positive.

Under pressure to come up with cash to pay down debt following credit ratings downgrades last week by Moody’s and Standard and Poor’s, Calpine Corp. said last week that it is considering selling all or a portion of its U.S. natural gas assets, which include about 389 Bcfe of proved gas reserves.

Under pressure to come up with cash to pay down debt following credit ratings downgrades last week by Moody’s and Standard and Poor’s, Calpine Corp. said Tuesday that it is considering selling all or a portion of its U.S. natural gas assets, which include about 389 Bcfe of proved gas reserves.