S&P lowers GenOn Energy

S&P said it lowered the issuer credit rating on GenOn Energy Inc. to CC from CCC-.

The agency also said it lowered the ratings on the company's secured and unsecured debt to CCC and CCC-, respectively, from CCC+ and CCC.

The recovery ratings of 1 and 2, respectively, are unchanged.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook is negative.

The downgrades stem from a recent filing made by the issuer that indicated that GenOn was pursuing an exchange with existing debtholders, S&P said.

The negative outlook reflects an expectation of a near-term event of default, either via a distressed exchange or through a voluntary bankruptcy filing, the agency said.

S&P said it expects that either outcome could materialize during the next month.

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