Moody's may cut Ameren Energy

Moody's Investors Service said it placed Ameren Energy Generating Co.'s ratings under review for downgrade.

The agency said the action was precipitated by Ameren Corp.'s announcement earlier today that its merchant generation segment is no longer core to its business strategy and that it will reduce, and ultimately eliminate over time, financial and shared services support to this business segment.

"Moody's senior unsecured rating of Ba3 on Ameren Genco has been predicated on Ameren's continued tangible financial support for this entity," said Toby Shea, a Moody's senior analyst, in a news release.

"The reduction and eventual elimination of parent company support will limit Ameren Genco's financial flexibility at a time when continued low power prices and ongoing environmental compliance requirements persists."

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