Moody's cuts Ameren Energy

Moody's Investors Service said it downgraded the senior unsecured rating of Ameren Energy Generating Co. to Ba2 from Ba1.

The outlook is negative.

This action concludes a review for downgrade of Ameren Genco's ratings that began in December.

Moody's also placed the Baa3 long-term ratings of Ameren Illinois Co. on review for possible upgrade and affirmed the Baa3 senior unsecured ratings and stable outlook of parent company, Ameren Corp.

The downgrades reflect the worsening financial prospects for this predominantly coal-fired generating company as low power prices, higher fuel and transportation expenses and EPA-mandated environmental compliance requirements negatively affect the company's margins and cash flow generating ability, the agency said.

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