Standard & Poor’s downgrades credit rating
MINNEAPOLIS, Minn., Dec. , 2002 — NRG Energy, Inc. on Friday provided an update on its NRG Northeast Generating LLC bond series, announcing that payments have not been made on the bond series that were due December 15.
The payments include $78.3 million in combined principal and interest obligations on NRG Northeast Generating LLC 8.06 percent Series A-1 senior secured bonds due 2004, 8.84 percent Series B-1 senior secured bonds due 2015 and 9.29 percent Series C-1 senior secured bonds due 2024. NRG has until December 30 to make principal and interest payments on these series.
Also today, Standard and Poor’s Ratings Services lowered the corporate credit rating on NRG Energy Northeast Generating LLC to “D” from “CC.”
“We do not believe that these missed payments, nor the subsequent downgrade, will affect the course of NRG’s restructuring discussions,” said Richard C. Kelly, NRG president and chief operating officer. “We are continuing to work with our lenders toward an overall restructuring of NRG’s debt and intend to address these payments as part of the broader plan.”
NRG Northeast Generating LLC bond series are non-recourse to NRG and Xcel Energy.
NRG Energy, a wholly owned and unregulated subsidiary of Xcel Energy, develops and operates power generating facilities. NRG’s operations include competitive energy production and cogeneration facilities, thermal energy production and energy resource recovery facilities.
Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in 12 Western and Midwestern states. The company provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the U.S. Company headquarters are located in Minneapolis.