Moody’s ups CenterPoint debt

Moody's Investors Service said it upgraded the senior unsecured rating of CenterPoint Energy Resources Corp. to Baa1 from Baa2 and affirmed its Prime-2 short-term rating for commercial paper.

The outlook is positive.

"The upgrade reflects the reduction in CERC's business risk effected through the internal spin of its GP and LP interests in Enable Midstream Partners to a new intermediate holding company – CenterPoint Energy Midstream," Robert Petrosino, Moody's vice president and senior analyst, said in a news release.

"CERC's credit quality is enhanced by the elimination of midstream business risk and the reduction of debt associated with its Enable investment, which more than mitigates the loss of distributions received from Enable."

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