Reuters: Bankruptcy News: TEXT-Fitch downgrades Dynegy's IDR to 'D'

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TEXT-Fitch downgrades Dynegy's IDR to 'D' Jul 9th 2012, 20:18 Mon Jul 9, 2012 4:18pm EDT July 9 - Fitch Ratings has downgraded the Issuer Default Rating (IDR) of Dynegy Inc. (Dynegy) to 'D' following its bankruptcy filing, and removed the issuer from Rating Watch Evolving. The ratings for Dynegy Power, LLC (GasCo, IDR 'CCC', Rating Watch Evolving) and Dynegy Midwest Generation, LLC (CoalCo, IDR 'CCC', Rating Watch Evolving) are unaffected by today's rating action on Dynegy. On July 6, 2012, Dynegy filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. This filing is necessary to facilitate the restructuring of Dynegy Holdings, LLC (DH), which had filed for bankruptcy protection on Nov. 7, 2011, along with four of its wholly owned subsidiaries. The Chapter 11 plan for reorganization for DH, which has been agreed to with DH's major creditors, contemplates a merger of Dynegy and DH such that Dynegy will be the surviving entity. Dynegy's bankruptcy filing has no impact on the bankruptcy remote entities, Dynegy Coal HoldCo, LLC and Dynegy GasCo Holdings, LLC and their indirect wholly owned subsidiaries, CoalCo and GasCo, respectively. The bankruptcy filing of Dynegy does not constitute a default under the first lien credit facilities at CoalCo and GasCo. Fitch has taken the following ratings action: Dynegy Inc. --IDR downgraded to 'D' from 'CC'. Additional information is available at 'www.fitchratings.com'. The ratings above were unsolicited and have been provided by Fitch as a service to investors. Applicable Criteria and Related Research: --'Corporate Rating Methodology' (Aug. 12, 2011); --'Distressed Debt Exchange' (Aug. 12, 2011); --'Recovery Ratings and Notching Criteria for Utilities' (May 12, 2011); --'Rating North American Utilities, Power, Gas and Water Companies' (May 16, 2011). Applicable Criteria and Related Research: Rating North American Utilities, Power, Gas, and Water Companies Recovery Ratings and Notching Criteria for Utilities Distressed Debt Exchange -- Global Cross-Sector Criteria - Amended Corporate Rating Methodology Link this Share this Digg this Email Reprints

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