On Aug. 17, 2010, Standard&Poor's Ratings Services affirmed its 'BB-' corporate credit rating and all issue ratings on NRG Energy Inc. The outlook is stable. In addition, we assigned our 'BB-' rating to the company's proposed $750 million senior bond issue (since upsized to $1.1 bil) to finance the acquisition of 3.8 GW of gas-fired assets from Dynegy. The bonds were assigned a '3' recovery rating, indicating our expectation of meaningful (50%-70%) recovery of principal in the event of a payment default. The 'BB-' corporate credit rating on NRG Energy Inc. (NRG) reflects the company's fundamental exposure to volatile commodity markets, balanced by a substantially hedged baseload fleet for the next few years that provides cash flow stability
