S&P: CenterPoint Energy Inc. Outlook Revised To Developing From Negative; Ratings Affirmed
"The developing outlook reflects a greater chance that CenterPoint's evaluation of strategic alternatives for its investment in Enable could result in a potential sale in the next 3-12 months," said credit analyst Gabe Grosberg. "A higher or lower rating or an affirmation would depend on CenterPoint's decision on its investment in Enable and the use of sale proceeds."
The developing outlook reflects the possibility of a higher or lower rating or an affirmation pending CenterPoint's decision on its investment in Enable.
We could lower the ratings over the next 3-12 months if CenterPoint maintains its ownership interest in Enable and Enable's stand-alone credit profile weakens, leading to a weaker consolidated business risk profile at CenterPoint. Alternatively, we could also lower the ratings if CenterPoint maintains its ownership interest in Enable and CenterPoint's consolidated financial measures consistently weaken to the lower half of the significant financial risk profile category (FFO to debt of 16% to 18%).
We could raise the ratings over the next 3-12 months if CenterPoint sells its ownership in Enable, the proceeds are used to maintain the current financial measures (FFO to debt 18%-20%), and the company is able to consistently demonstrate effective management of regulatory risk in all of its regulated jurisdictions.