Fitch affirms CenterPoint

Fitch Ratings said it affirmed CenterPoint Energy, Inc.'s issuer default rating, senior unsecured notes and pollution control revenue bonds at BBB-; secured pollution control revenue bonds at A-; trust preferred stock at BB; and short-term issuer default rating and commercial paper at F3.

CenterPoint Energy Resources Corp.'s issuer default rating and senior unsecured notes were affirmed at BBB, and its short-term issuer default rating and commercial paper were affirmed at F2.

Finally, the agency affirmed CenterPoint Energy Houston Electric's issuer default rating at BBB; first mortgage bonds, secured pollution control revenue bonds and general mortgage bonds at A-; unsecured credit facility at BBB+; and short-term issuer default rating at F2.

The outlook is stable.

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

Fitch said that it acknowledges the consistent progress management has made in reducing the consolidated leverage, but holding company leverage remains relatively high as a result of legacy stranded costs issues.

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