Fitch downgrades Ameren Energy

Fitch Ratings said it downgraded the issuer default rating of Ameren Energy Generating Co. to CC from B- and removed the negative rating outlook.

Fitch also downgraded Ameren Energy's senior unsecured debt ratings to CCC-/RR3 from B+/RR2, based on an updated recovery valuation.

At the same time, the agency affirmed the BBB issuer default rating of Ameren Corp., BBB+ issuer default rating of Union Electric Co. and the BBB- issuer default rating of Ameren Illinois Co.

Ameren Illinois' outlook was revised to stable from positive. The outlooks for both Ameren Corp. and Union Electric remain stable.

Fitch said the ratings recognize that Ameren Energy's parent holding company, Ameren Corp., no longer intends to provide financial support to Ameren Energy, including funding for the 2018 debt maturity of $300 million, and the significant capital spending required at the Newton coal-fired plant to be compliant with Illinois environmental regulations.

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