Entergy Keeps Negative Fitch Rating

Light & Medium Truck, Apr 2006

Fitch Ratings maintained a negative rating outlook on several Entergy companies following a February decision by the Louisiana Public Service Commission to allow interim recovery of up to only $20 million in storm costs.

Entergy Louisiana LLC, Entergy Louisiana Holdings Inc. and Entergy Gulf States Inc. had sought permission to collect a combined $64 million in recovery costs over a 10-year period.

"The LPSC's decision reinforces the fact that many hurdles to storm cost recovery still face ELI and ESGI," Fitch Ratings said in a release.

A favorable decision by the LPSC on a permanent recovery amount and the companies' securitization plans would be positive on credit quality and could raise the Rating Outlook, said the company.