Fitch rates CenterPoint notes BBB-

Fitch Ratings said it assigned a BBB- rating to the $300 million 6½% notes due May 1, 2018 issued by CenterPoint Energy, Inc.

The outlook is stable.

Proceeds will be used for general corporate purposes, including the satisfaction of cash payment obligations in connection with future conversions of CenterPoint's 3.75% convertible notes or in connection with the May 30 redemption of $391 million of the 3.75% convertibles.

The agency said CenterPoint's ratings are supported by stable cash flows that mainly come from lower-risk, regulated LDC, T&D and pipeline operations, limited commodity price risk and relatively healthy economies in Houston and Minneapolis utility service territories.

Key credit concerns are high consolidated leverage and weak coverage relative to peers and guidelines for the rating category, a challenging regulatory environment in Texas and high capital spending, Fitch added.

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