First Reaction To Constellation-edf Deal Negative: Constellation Warns Of Dividend Cut, Earnings Hit

摘要

The financial community's reaction to Constellation Energy Group's deal with France's EDF Group was initially negative: the stock was the biggest percentage loser in the power sector December 17, as CEG warned of a big hit to fourth-quarter earnings and predicted the dividend on common stock would be slashed next year. Moody's Investors Service downgraded CEG's senior unsecured debt from Baa2 to Baa2 and kept it on review for downgrade. But it affirmed BGE senior unsecured at Baa2 and kept the outlook stable, concluding that CEG's actions have no direct and immediate consequences on BGE's credit profile.