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BULLETIN: Mirant's Withdrawn Acquisition Bid Will Not Affect Ratings
Standard & Poors, June 2006
Abstract
NEW YORK (Standard & Poor's) June 12, 2006--Standard & Poor's Ratings Services said today that Mirant Corp.'s (B+/Stable/--) announcement that it has withdrawn its bid to acquire NRG Energy Inc. (B+/Stable/B-2) for about $7.9 billion in cash and stock does not affect the current long-term ratings on Mirant and its rated subsidiaries. We had expected that the rating of both companies would not likely have been affected, if the transaction been consummated in accordance with Mirant's public description of its terms, although the potential for substantial additional indebtedness to generate the $3.9 billion cash portion of the deal and the erosion of cash liquidity could have had negative implications for current credit ratings. Mirant's aggressive acquisition strategy for NRG Energy...
Companies mentioned in this report are: Mirant Corp.,NRG Energy Inc.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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