Dynegy Ratings Cut to ‘Junk’ by S

Dynegy Inc., owner of 21 power plants and a natural gas pipeline from Texas to Michigan, had its credit ratings cut to “junk” by Standard & Poor’s Corp. because of lower profit from selling electricity to other utilities.

S&P; cut the long-term rating for Dynegy and its subsidiaries two levels to BB from BBB-minus, the lowest investment grade, S&P; said. Senior unsecured bonds of Dynegy Holdings Inc., Dynegy’s debt-issuing arm, were cut to B-plus from BBB-minus.