S&P: Entergy unchanged

Standard & Poor's said that Entergy Corp.'s (BBB/negative) announcement that it plans to repurchase up to $1.5 billion in common shares over the next three years is largely neutral for credit quality, because we don't expect the company's debt leverage to materially increase to repurchase the shares.

The agency said that Entergy's announcement is driven by expectations of improvements in cash flow generation at the commercial nuclear business as well as in the regulated operations.

According to S&P, should adjusted debt leverage begin to rise disproportionately for the rating category as a result of the share repurchase program, the effect on credit quality will be negative.

Entergy has stated that should other corporate opportunities arise or if debt leverage increases materially, then the share repurchase program could be put on hold or terminated, the agency said, adding that the share repurchase plan does not currently affect the rating on the company.

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