S&P keeps Constellation Energy on credit watch list
Standard & Poor’s Ratings Services said Monday Constellation Energy Group’s credit will stay on a watch list.
“The company’s ability to shore up its liquidity and to reduce risk in its commodities business are key credit drivers,” said analyst Aneesh Prabhu in a research note released Monday.
The major credit rating agency — it put the Baltimore energy giant on watch Sept. 17 with threats of a downgrade — said a credit facility for Constellation from a consortium of banks set to expire in October was extended through the end of the year.
Constellation officials said Oct loan till payday. 31 they may need an additional $750 million in cash to stabilize the company’s financial position. MidAmerican pumped an estimated $1 billion into the company in September.
Standard & Poor’s move to put Constellation on credit watch in September eventually triggered the proposed $4.7 billion sale of Constellation to MidAmerican.
Constellation (NYSE: CEG) stock closed down 3 percent Monday at $23.46.
Constellation Energy plans to hold a third-quarter earnings call Nov. 6.