S&P: Dynegy unaffected

Standard & Poor's said its ratings on Dynegy Inc. and Dynegy Power LLC are not currently affected by the conclusion of the examiner of Dynegy Holdings LLC's bankruptcy that key asset transfers between Dynegy Inc. and certain subsidiaries before the bankruptcy were fraudulent transfers.

While S&P said it does not have an opinion on the merits of the examiner's findings, the negative outlook already reflects the risk that Dynegy Inc. and Dynegy Power may be drawn into the Dynegy Holdings bankruptcy. Such risk includes the possibility that these key asset transfers may be reversed.

The agency said it expects the ensuing litigation among Dynegy Inc. and its subsidiaries and various creditor groups to be a more complex and protracted process given the examiner's conclusions and the likely need to revise the bankruptcy plan.

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