S&P: CenterPoint move positive

Standard & Poor's said CenterPoint Energy Inc.'s (BBB/negative/--) and Texas Genco Holdings Inc.'s announcement Wednesday that a definitive agreement for GC Power Acquisition LLC, a newly formed entity owned in equal parts by affiliates of The Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. LP, and Texas Pacific Group, to acquire Texas Genco for about $3.65 billion in cash is a significant credit-enhancing event for CenterPoint.

There will be no rating action or outlook change at this time because the current rating assumes the successful monetization of CenterPoint's 81% interest in Texas Genco, including the sale of the assets and the securitization of stranded costs; however, the announcement decreases the likelihood of an eventual downgrade.

S&P said it expects total after-tax cash proceeds to CenterPoint of about $2.5 billion as a result of the transaction, and expects that the proceeds will be used for debt reduction.

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