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NRG Energy 'B-2' Rating Put On Watch Neg After Mirant Acquisition Bid
Standard & Poors, June 2006
NEW YORK (Standard & Poor's) June 1, 2006--Standard & Poor's Ratings Services said today that it placed its 'B-2' short-term rating on NRG Energy Inc. on CreditWatch with negative implications in response to Mirant Corp.'s (B+/Stable/--) recently announced unsolicited bid to acquire NRG for about $7.9 billion in cash and stock. NRG is actively resisting the acquisition. The long-term corporate credit rating on NRG is 'B+'. The outlook is stable. Because this transaction, if successful, would involve two companies with equivalent ratings that already incorporate financial capacity to pursue speculative investment, if the transaction is consummated in accordance with Mirant's public description of its terms, it is unlikely that either Mirant's or NRG's current long-term ratings will be affected. This...
Companies mentioned in this report are: NRG Energy Inc.,Mirant Corp.
Action: On CreditWatch:Negative
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.
NRG Energy Inc.,Mirant Corp.