Moody's raised Vistra Energy Corp.'s corporate family rating to Ba1 from Ba2, and its probability of default rating to Ba1-PD from Ba2-PD. The outlook is positive.
The rating agency also upgraded Vistra Operations Co. LLC's senior unsecured rating to Ba2 from Ba3 and its senior secured rating to Baa3 from Ba1.
Vistra is expected to generate a ratio of cash flow from operations-to-debt of about 21% in 2019 and is expected to rise to the mid-20% range in 2020 and 2021.
The positive outlook by Moody's on the company reflects the commitment by company management to deleverage, which includes reducing net debt to EBITDA to 2.6x for 2020 and 2.5x for 2021, as well as the favorable power price environment in the Electric Reliability Council Of Texas Inc. market.