New York Rejects Entergy’s Spinoff of Nuclear Plants (Update1) [View All]

Source: Business Week (Bloomberg)

Entergy Corp.’s plan to raise at least $3 billion by spinning off six nuclear reactors into a separate company was rejected by the New York Public Service Commission.

The commission voted unanimously today at a regular meeting in New York City, after its staff and state Attorney General Andrew Cuomo argued the transaction would hurt the public by creating a “debt-laden” company with fewer financial resources to meet obligations to dismantle the plants.
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Enexus “would not be a financially viable entity in the long term” because of the debt loads proposed by Entergy, John Stewart, the regulator’s director of utility rates and service, said at the meeting.
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Entergy’s debt is rated BBB, the second-lowest investment grade, by Standard & Poor’s and Baa3, the lowest investment grade, by Moody’s Investors Service.
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Read more: http://www.businessweek.com/news/2010-03-26/new-york-rejects-entergy-s-spinoff-of-nuclear-plants-update3-.html