Fitch cuts CenterPoint Energy Houston

Fitch Rating said it downgraded CenterPoint Energy Houston Electric's long-term issuer default rating to BBB+ from A-. The outlook has been revised to negative from stable. In addition, Fitch affirmed CenterPoint Energy Corp.'s long-term IDR at BBB and revised the rating outlook to negative from stable.

The rating action follows the approval of CenterPoint Energy Houston’s rate case settlement by the Public Utilities Commission of Texas on Friday.

“Fitch believes that the unfavorable outcome signals a more challenging regulatory environment in Texas for CEHE. Lower authorized returns and equity capitalization, combined with a tax-reform related refund will pressure CEHE's and CNP's credit metrics in the next few years,” Fitch said in a press release.

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