ATLANTA - Mirant Corp. suffered another financial blow Monday when Standard & Poor's lowered its credit ratings of the energy merchant to noninvestment grade. S&P, which also lowered its rating on the company's preferred stock, said Mirant's outlook is negative.<br>
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Mirant and its subsidiaries have about $10.7 million in outstanding debt and $2.2 billion in cash, including about $400 million in Asia that is restricted from distribution, S&P said.<br>
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"The rating action follows Standard & Poor's expectation that Mirant's probable financial performance in the next two to three years will not support an investment-grade rating, " said Terry Pratt, an S&P credit analyst. He also said Mirant faces "greater financial uncertainty" because of its high debt, low power prices and borrowing difficulties.<br>
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Atlanta-based Mirant is among the largest suppliers of electric power and natural gas in the U.S.<br>
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Like many of its rivals in the energy generation and trading industry, Mirant has been frantically selling assets since late last year to raise cash and improve liquidity.<br>
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"It's something we're not surprised about, but we're disappointed," Mirant spokesman David Payne said of the downgrade. "We have an aggressive plan to raise our liquidity through asset sales. We've made some headway with that."<br>
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Mirant shares gained 26 cents to close at $1.45 Monday on the New York Stock Exchange, before losing 13 cents in extended trading.<br>
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