TEXT-Fitch raises CenterPoint Energy, CenterPoint Energy Houston

May 21 - Fitch Ratings has upgraded the Issuer Default Rating (IDR) of
CenterPoint Energy, Inc. (CNP) to 'BBB' from 'BBB-' and upgraded CNP's
senior unsecured rating to 'BBB' from 'BBB-'. Fitch also upgraded the IDR of
CNP's subsidiary CenterPoint Energy Houston Electric, LLC (CEHE) to 'BBB+' from
'BBB' and upgraded CEHE's senior unsecured rating to 'A-' from 'BBB+'. Fitch
affirmed the IDR of CNP's subsidiary CenterPoint Energy Resources Corp. (CERC)
at 'BBB'. The short-term IDR of CERC was downgraded to 'F3' from 'F2',
reflecting alignment with the short-term ratings of its parent. The Rating
Outlook for all three companies is Stable. Approximately $6 billion of
outstanding long-term debt is affected. A list of all rated debt is provided at
the end of this press release.

CNP's rating and Outlook primarily reflect the consistent progress that has been
made in improving financial flexibility and reducing consolidated leverage. CNP
reduced debt by approximately $600 million this year, representing approximately
one-third of true-up proceeds. The rating and Outlook also reflect Fitch's
expectation that CNP will utilize the remaining proceeds in a balanced mix of
transactions or investments, including additional debt reduction, capital
expenditure in existing businesses, growth investments and/or M&A transactions
in the non-regulated operations that will grow proportionally with its regulated
operations. Additionally, the rating and Outlook also assume that, on a
consolidated basis, if a master limited partnership (MLP) were to be established
for any or all of CERC's midstream assets, it would be structured in a way that
would likely be credit neutral to CNP and its subsidiaries.

Fitch expects CNP's regulated and fee-based operations to continue to contribute
a large majority of the consolidated operating income and that the sensitivity
of cash flow and working capital needs to changes in commodity prices will
remain low.

Fitch believes that the deleveraging coupled with low business risk profile
should be able to support CNP's credit metrics at a level that is more
consistent with a 'BBB' rated utility. Fitch expects CNP to produce consolidated
Funds Flow from Operations (FFO) to Debt in the high teens to low 20% and Debt
to EBITDA in the low 3x in the next few years.

The event risk at CNP has increased due to the uncertainty surrounding the use
of the remaining true-up proceeds and management's expressed interested in an
MLP CNP and CERC's ratings will be more closely aligned due to Fitch's
expectations that the uncertainty of the use of remaining proceeds will be
mostly associated with investments in CERC. Fitch expects that majority of the
proceeds to be allocated in the field services area primarily due to the
abundance of the opportunities in the sector and the strategic inclination of
management. Fitch would be concerned if management were to pursue any
significant commodity sensitive, unregulated or un-contracted investments or an
MLP that would substantially alter the overall risk profile of the company from
financial and operational standpoints.

CEHE's IDR and Stable Outlook reflect the low business risk of its regulated
electric transmission and distribution operations in Texas Fitch considers the
regulatory and economic environment in Texas reasonably supportive to CEHE's
credit profile. CEHE has the ability to earn a return on its transmission and
distribution investments with minimal regulatory lag. In addition, CEHE bears no
commodity risk and does not maintain the provider of last resort requirement
like T&Ds in other jurisdictions.

Fitch expects CEHE's credit metrics to position well within its rating category
in the next 12 to 18 months, albeit modestly weaker than 2011 due to expected
normal weather and a rate reduction implemented in September 2011. Fitch
forecasts CEHE's FFO to total debt to stabilize around low to mid-20% and total
debt to EBITDA in the high 2x to low 3x in the next few years.

Fitch would be concerned if the regulatory supportiveness in Texas takes on a
negative tone. Fitch also believes that CEHE's current lack of participation in
the state's prioritized initiative Competitive Renewable Energy Zone (CREZ)
project could be a modest constraint to its future rate base growth and ratings
against its peers over the long term.

CERC's IDR and Stable Outlook assume that the expected growth investments in the
field services area will be conducted in a prudent manner and that CERC's credit
profile will not substantially deteriorate as a result. Fitch expects CERC to
continue to derive the majority of its cash flow from its geographically
diversified regulated operations with added stability from its fee-based
operations. CERC's cash flows from its LDCs are stabilized through diversified
and overall supportive regulatory mechanisms in six states. Its pipelines are
mostly located near the natural gas supply basins and end-user markets. Over 90%
of the interstate pipeline capacity is subscribed with high visibility in cash
flows. Cash flows at CERC's field services segment, though unregulated, are
mainly tied to contractual fee-based revenue streams, thus minimizing large
exposure to volume risk as a result of movements in natural gas prices and
mitigating Fitch's concern around the growing proportion of field services
operations in the overall business mix at CERC. The collateral requirements at
CERC's competitive natural gas marketing business are sensitive to natural gas
price movements. To mitigate the risk, management has implemented an internal
cap on working capital requirements to limit its collateral exposure to falling
natural gas prices. Fitch would be concerned if management were to
disproportionately grow commodity sensitive, non-fee based businesses.

Fitch upgrades, affirms, or assigns the following ratings with a Stable Outlook:

CenterPoint Energy, Inc.

--Upgrades IDR to 'BBB' from 'BBB-';

--Upgrades Senior Unsecured Notes and pollution control revenue bonds to 'BBB'
from 'BBB-';

--Upgrades Secured pollution control revenue bonds to 'A' from 'A-';

--Affirms Short-term IDR/Commercial paper at 'F3'.

--Assigns Junior Subordinated Debenture (ZENS) at 'BB+'

CenterPoint Energy Houston Electric

--Upgrades IDR to 'BBB+' from 'BBB';

--Upgrades First Mortgage Bonds to 'A' from 'A-';

--Upgrades Secured pollution control revenue bonds to 'A' from 'A-';

--Upgrades General Mortgage Bonds to 'A' from 'A-';

--Upgrades Unsecured Credit Facility to 'A-' from 'BBB+';

--Affirms Short-term IDR at 'F2'.

CenterPoint Energy Resources Corp.

--Affirms IDR at 'BBB';

--Affirms Senior Unsecured Notes at 'BBB'.

Fitch downgrades the following rating with a Stable Outlook:

CenterPoint Energy Resources Corp.

--Short-term IDR/Commercial paper to 'F3' from 'F2'.
Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and