Despite affirming its “BBB+” rating on Dallas-based TXU Corp., Standard & Poor’s Ratings Services (S&P) said that it has revised the outlook for the electricity and gas provider and its subsidiaries to “negative” from “stable.” The rating agency pointed out that the company has about $18.7 billion in debt outstanding.
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Diversification Leads Moody’s, S&P to Cut Peoples’ Ratings
Following similar action taken by Moody’s Investors Service earlier in the week, Standard & Poor’s Ratings Services (S&P) said Thursday that it lowered its corporate credit rating on Peoples Energy Corp. to “A-” from “A+” with a current outlook of stable. The agency noted that Chicago-based Peoples Energy has about $946 million in outstanding debt. In addition, S&P lowered the corporate credit rating on Peoples Energy’s Peoples Gas Light & Coke Co. subsidiary to “A-” from “AA-“.
S&P Downgrades Peoples Energy on Nonregulated Business Concern
Following similar action taken by Moody’s Investors Service earlier in the week, Standard & Poor’s Ratings Services (S&P) said Thursday it is lowering its corporate credit rating on Peoples Energy Corp. to “A-” from “A+” with a current outlook of stable. The agency noted that Chicago-based Peoples Energy has about $946 million in outstanding debt. In addition, S&P lowered the corporate credit rating on Peoples Energy’s Peoples Gas Light & Coke Co. subsidiary to “A-” from “AA-“.
PJM Official Questions Hourly Bidding Approach in FERC’s SMD
An official with PJM Interconnection last Tuesday questioned whether FERC’s recently unveiled proposal for a standard market design (SMD) in U.S. wholesale electricity markets makes the right call in proposing to allow for hourly bidding on energy transactions without any types of restrictions.
S&P Downgrades Reliant Resources to ‘Junk’
Cutting the credit rating of Reliant Resources Inc. (RRI) and related entities to “junk” status Friday, Standard & Poor’s Ratings Services (S&P) said the ratings for the companies will remain on negative CreditWatch until debt and credit facility questions can be resolved.
S&P Downgrades Reliant Resources to ‘Junk’
Cutting the credit rating of Reliant Resources Inc. (RRI) and related entities to “junk” status Friday, Standard & Poor’s Ratings Services (S&P) said the ratings for the companies will remain on negative CreditWatch until debt and credit facility questions can be resolved.
S&P Cuts Ratings on NRG to CCC
Xcel Energy subsidiary NRG Energy is fast approaching the basement of junk bond ratings levels. Standard & Poor’s (S&P) lowered its credit ratings to CCC from B-plus last Thursday due to NRG’s urgent need to sell off a massive number of power generation assets in order to meet a $1.3 billion collateral payment deadline of Sept. 13 or convince lenders it will be able to make the payments soon. S&P also lowered its credit rating on NRG Northeast Generating LLC’s bonds and NRG South Central Generating LLC’s bonds to CCC.
Bidding on El Paso Turned-Back Capacity Closes Despite Pleas for Extension
Bidding for turned-back capacity on El Paso Natural Gas came to a close at 8 p.m. (Eastern Standard Time) Friday, despite a last-minute plea by a group of full-requirements (FR) shippers for FERC to postpone the closing deadline, and a challenge by California regulators and utilities to El Paso’s decision to give FR shippers preferential access to the capacity. The bidding was seen as a critical first step in the FERC-ordered plan to convert all of the FR shippers on El Paso to contract-demand (CD) service by Nov. 1 of this year, and end a years-long dispute over the disparate manner in which capacity has been allocated on the pipeline.
S&P: Ratings Trend for U.S. Power Firms ‘Decidedly Negative’
The ratings trend for U.S. investor-owned electric and gas and electric utilities remains “decidedly negative,” with the average rating now at BBB+, Standard & Poor’s (S&P) ratings services said last week in a report card on U.S. utilities.
S&P Reduces Williams Cos. Ratings to Junk
Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.