Research Update: NRG Energy Inc. Outlook Revised To Positive On Improved Credit Metrics; Issuer Credit And Debt Ratings Affirmed

We revised our outlook on NRG Energy Inc. to positive from stable, reflecting the significant improvement in the company's credit metrics with S&P Global Ratings-adjusted leverage trending below 3.5x. NRG Energy Inc. has reduced total debt by $1.5 billion in 2023, resulting in debt/EBITDA below 3.5x compared to our prior expectations of 4.0x. The company plans to continue to delever in 2024, and we expect debt/EBITDA will continue to decline to 3.0x-3.25x over the forecast period. S&P Global Ratings affirmed its 'BB' long-term issuer credit rating on NRG Energy. The 'BBB-' issue-level rating on the company's senior secured debt and 'BB' issue-level rating on its senior unsecured debt remain unchanged. The preferred stock issuance rating of 'B' also remains unaffected.

...- We revised our outlook on NRG Energy Inc. to positive from stable, reflecting the significant improvement in the company's credit metrics with S&P Global Ratings-adjusted leverage trending below 3.5x. - NRG Energy Inc. has reduced total debt by $1.5 billion in 2023, resulting in debt/EBITDA below 3.5x compared to our prior expectations of 4.0x. The company plans to continue to delever in 2024, and we expect debt/EBITDA will continue to decline to 3.0x-3.25x over the forecast period. - S&P Global Ratings affirmed its '##' long-term issuer credit rating on NRG Energy. - The '###-' issue-level rating on the company's senior secured debt and '##' issue-level rating on its senior unsecured debt remain unchanged. The preferred stock issuance rating of 'B' also remains unaffected. - The positive outlook reflect our expectation that NRG will continue its deleveraging in order to maintain debt/EBITDA of 3.0x-3.25x through 2025....

Research Update