New York, June 16, 2017 -- Moody's Investors Service, ("Moody's") today downgraded the Probability of Default Ratings (PDR) of GenOn Energy, Inc.'s D-PD from Caa3-PD. The downgrade was prompted by GenOn's June 14, 2017 announcement that it had initiated Chapter 11 bankruptcy proceedings. The outlook has been changed to stable from negative.
Concurrently, Moody's affirmed the unsecured ratings of GenOn Energy and GenOn Americas Generation at Caa3.
Subsequent to today's actions, Moody's will withdraw the ratings due to GenOn's bankruptcy filing. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website,
www.moodys.com.
The following ratings were downgraded and will be withdrawn:
Probability of Default Rating to D-PD from Caa3-PD
All of the Loss Given Default assessments will be withdrawn.
The following ratings were affirmed and will be withdrawn:
GenOn Energy, Inc.
Corporate Family Rating at Caa3
Speculative Grade Liquidity Rating at SGL-4
GenOn Escrow Corp.
Senior Unsecured Regular Bond/Debenture at Caa3 (LGD3)
GenOn Americas Generation, LLC
Senior Unsecured Regular Bond/Debenture at Caa3 (LGD3)
GenOn is a wholly-owned subsidiary of NRG Energy Inc. (NRG, Ba3 Stable), which is itself the largest merchant power company in the US with about 50 GW of generating capacity, including the 15.4 GW at GenOn.
GenOn's bankruptcy filing follows the agreement on June 12th between NRG and certain GenOn entities, including GenOn Energy and GenOn Americas Generation, LLC ("GAG") to reorganize GenOn's debt structure. However, the agreement did not include GenOn Mid-Atlantic, LLC (Caa1 negative) and GenOn REMA, LLC (Caa1 negative).