Fitch: CenterPoint to positive

Fitch Ratings said it affirmed the issuer default ratings of CenterPoint Energy, Inc. and its subsidiary CenterPoint Energy Houston Electric, LLC at BBB- and BBB, respectively, and revised the outlook to positive from stable.

Fitch also affirmed CenterPoint Energy's senior notes at BBB-, secured pollution control revenue bonds at A-, short-term issuer default rating at F3 and commercial paper at F3.

Fitch also affirmed the BBB issuer default rating, F2 short-term issuer default rating and F2 commercial paper rating of CenterPoint Energy Resources Corp. and maintained the outlook at stable.

The revision of the outlook was driven by a favorable decision by the Texas Supreme Court in the stranded-cost true-up case that entitles the company to seek recovery of about $1.85 billion, which includes stranded costs and transition expenses as well as accrued interest, the agency said.

The positive outlook considers the expectation that CenterPoint Energy prudently uses the securitization proceeds, the agency added. The outlook revision was driven by the removal of the risk related to a potentially unfavorable decision in the stranded-cost litigation.

The ratings consider regulated and predictable cash flows from the pipeline and local distribution companies operations, Fitch said.

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