Fitch ups CenterPoint Energy Houston

Fitch Ratings said it has upgraded CenterPoint Energy Houston Electric, LLC's unsecured credit facility to BBB+ from BBB and affirmed its long-term issuer default rating at BBB and short-term issuer default rating at F2.

The agency also said it affirmed CenterPoint Energy, Inc.'s long-term issuer default rating at BBB-, senior unsecured debt at BBB-, trust preferred debt/ZENS at BB+, short-term issuer default rating at F3 and commercial paper at F3, along with CenterPoint Energy Resources Corp.'s long-term issuer default rating at BBB, senior unsecured debt at BBB, convertible subordinated notes at BBB-, short-term issuer default rating at F2 and commercial paper at F2.

The outlook is stable.

The ratings are supported by upstream dividend payments from its mostly regulated subsidiaries, a diverse business mix across electric and gas operations and a conservative management strategy that limits exposure to commodity price movements, Fitch said.

The primary credit concern is that, despite gradual improvement, the consolidated balance sheet remains highly leveraged and coverage ratios are weak relative to the rating guidelines, the agency said.

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