Research Update: NRG Energy Inc. Ratings Placed On CreditWatch With Negative Implications On Impact From Texas Winter Storm

NRG Energy Inc. has disclosed it will face costs of up to $750 million stemming from the winter storm in Texas that left many without power. This offsets the strong performance of its integrated business model amid pandemic-related headwinds. The cost of the storm will hinder the company's deleveraging efforts and halt the improvement in its credit metrics over the short to medium term. Specifically, S&P Global Ratings' assessment of incremental storm costs will be key over the intermediate to short term, while the conditions and reforms in the Electric Reliability Council of Texas (ERCOT) market will be relevant over the medium term. We have placed our 'BB+' issuer credit rating on NRG on CreditWatch with negative implications. We will

...- NRG Energy Inc. has disclosed it will face costs of up to $750 million stemming from the winter storm in Texas that left many without power. This offsets the strong performance of its integrated business model amid pandemic-related headwinds. - The cost of the storm will hinder the company's deleveraging efforts and halt the improvement in its credit metrics over the short to medium term. Specifically, S&P Global Ratings' assessment of incremental storm costs will be key over the intermediate to short term, while the conditions and reforms in the Electric Reliability Council of Texas (ERCOT) market will be relevant over the medium term. - We have placed our '##+' issuer credit rating on NRG on CreditWatch with negative implications. - We will update our views as we incorporate new information and could resolve the CreditWatch listing over the next several weeks to two months....

Research Update