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CNP > SEC Filings for CNP > Form 8-K on 7-May-2009All Recent SEC Filings

Show all filings for CENTERPOINT ENERGY INC | Request a Trial to NEW EDGAR Online Pro

Form 8-K for CENTERPOINT ENERGY INC


7-May-2009

Other Events


ITEM 8.01. OTHER EVENTS.

On April 30, 2009, Standard & Poor's Ratings Services, a division of The McGraw Hill Companies ("S&P"), issued a report on CenterPoint Energy, Inc. (the "Company"), CenterPoint Energy Houston Electric, LLC ("CenterPoint Houston") and CenterPoint Energy Resources Corp. ("CERC"). In its report, S&P affirmed the senior long-term debt ratings of the three companies but revised its outlook to negative from stable. S&P also lowered short-term corporate credit and commercial paper program ratings of the Company and CERC to "A-3" from "A-2". The Company cannot assure you that these ratings will remain in effect for any given period of time or that these ratings will not be lowered or withdrawn entirely. The Company notes that these credit ratings are not recommendations to buy, sell or hold its securities and may be revised or withdrawn at any time. Each rating should be evaluated independently of any other rating. Any future reduction or withdrawal of one or more of the Company's credit ratings could have a material adverse impact on its ability to obtain short- and long-term financing, the cost of such financing and the execution of its commercial strategies.
On May 1, 2009, Reliant Energy, Inc. ("RRI") confirmed the completion of the sale of its Texas retail business to NRG Retail LLC, a subsidiary of NRG Energy, Inc. As a consequence of its acquisition of the RRI retail business, NRG Retail LLC, which the Company understands will continue to make retail electric sales under the "Reliant Energy" brand, is expected to become CenterPoint Houston's largest customer for retail electric deliveries. In connection with the sale, RRI changed its name to RRI Energy, Inc. and no longer provides service as a retail electric provider in CenterPoint Houston's service territory. The sale does not alter RRI's contractual obligations to indemnify the Company and its subsidiaries for certain liabilities, including their indemnification regarding certain litigation, nor does it affect the terms of existing guaranty arrangements for certain RRI gas transportation contracts.


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