CMS Shares Dive to 14-Year Low
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Shares of CMS Energy Corp. dropped after a leading credit rating agency cut the power company’s rating, raising the chances of a cash crunch.
CMS President and Chief Operating Officer David Joos said he was “frankly disappointed” by Moody’s Investors Service’s decision, which adds to the problems of a company whose chief executive resigned last month amid a power-trading scandal.
The Moody’s downgrade, which occurred Tuesday, lowered the rating on CMS senior unsecured debt from Ba3 to B3, making it a low junk grade.
Moody’s cited CMS’ problems “executing an aggressive growth strategy,” as well as weak cash flow and its need to refinance upcoming debt, including a $450-million line of credit due Monday.
Shares of CMS closed down $2.10 to $13.01 on the NYSE.
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