CIBC World Keeps 'Hold' on Dynegy
CIBC World keeps its hold rating on Dynegy (DYN ).
S&P cut the company's long-term corporate credit ratings and its UNITS to BBB- from BBB. Analyst William Hyler says on a June 23 conference call, Dynegy provided an updated capital restructuring plan aimed at boosting liquidity by a targeted $2 billion. He noted the company also indicated breakeven results for the second quarter of 2002.
He said, although he's encouraged by these developments, he continues to stay on the sidelines due to execution risk, ongoing SEC/FERC investigations, and the potential for further downgrade action by ratings agencies. Hyler maintains his $1.30 2002 earnings per share and $1.25 2003 EPS estimates.