S&P Cuts Dynegy Rating to Junk Status

Analyst John Kennedy says that erosion in Dynegy's core merchant energy business has become more pronounced

On July 22, Standard & Poor's Rating Services lowered its long-term corporate credit ratings of Houston, Texas–based energy provider Dynegy (DYN ) and its subsidiaries to BB from BBB-. The notching separation between Dynegy's senior secured and senior unsecured debt reflects the increased use of secured financing that places the unsecured debtholders at a disadvantage. The ratings remain on CreditWatch with negative implications.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.