Moody’s Ratings upgraded CenterPoint Energy Resources Corp.’s (CERC) commercial paper rating to Prime-1 from Prime-2 on Wednesday, aligning it with the company’s senior unsecured debt rating of A2.
The correction resolves an error from an August 19 rating action, when CERC’s commercial paper was mistakenly affirmed at Prime-2 despite the A2 senior unsecured upgrade. Moody’s stated the adjustment does not affect CERC’s other ratings or its stable outlook.
CERC’s credit profile reflects low business risk, supported by four regulated gas distribution businesses operating under reasonably predictable regulatory frameworks. The company typically earns close to its allowed rate of return despite elevated capital spending. Moody’s noted CERC does not plan to issue incremental holding company debt beyond rate base-driven levels at its utilities.
For the twelve months ended June 30, 2026, CERC’s cash flow from operations before working capital to debt ratio stood at 21.6%, within Moody’s expected range of 21–26% for the period.
CenterPoint Energy, Inc., CERC’s parent, expects to invest approximately $2.3 billion in its natural gas businesses in 2026, followed by $2.1 billion in 2027. Over the 2026–2030 period, total gas capital expenditures are projected to exceed $10 billion, surpassing CERC’s current rate base.
