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���������ֳ�-New York-April 4, 2003: ���������ֳ� has affirmed the outstanding credit ratings of CenterPoint Energy, Inc. (CNP) and its subsidiaries CenterPoint Energy Houston Electric, LLC (CEHE) and CenterPoint Energy Resources Corp. (CERC). The Rating Outlook for all three companies has been revised to Stable from Negative. Details of the securities affected are listed below.

The rating action is supported by the progress CNP has made in recent weeks toward restoring its liquidity position and eliminating near-term debt refinancing risk. In addition, the financial condition of CNP's former subsidiary Reliant Resources, Inc. (RRI; 'CCC+' senior unsecured debt, Rating Watch Positive by ���������ֳ�) has stabilized following the successful conclusion of a $6.2 billion global bank refinancing package on March 31, 2003. This was an important consideration in ���������ֳ�'s rating analysis for CNP as RRI has agreed to indemnify CNP for any potential damages emanating from various lawsuits and investigations related to the business activities of RRI, including RRI's involvement in the California wholesale power market.

The successful refinancing of CNP's $3.85 billion holding company credit facility on Feb. 28, 2003 effectively paved the way for the execution of several liquidity enhancing transactions throughout the CNP group. CNP and its subsidiaries CEHE and CERC have all recently accessed the long-term debt capital markets at reasonable terms and spreads. In addition, CERC has executed a new unsecured $200 million 364-day revolving credit facility.

CNP's current ratings anticipate the successful execution of the planned sale of CNP's Texas generating assets in 2004 and the subsequent recovery of stranded costs as permitted under approved Texas restructuring legislation. It is currently estimated that CNP will issue more than $4 billion of securitization bonds in early 2005 with proceeds used to retire a $1.3 billion secured term loan at CEHE and bank debt at CNP. Any unexpected new legislation or appeals which would have the affect of amending the amount and/or delaying the ultimate timing of stranded cost recovery would be an unfavorable credit event.

The following ratings are affirmed by ���������ֳ�:

CenterPoint Energy, Inc.

--Senior unsecured debt 'BBB-';

--Unsecured pollution control bonds 'BBB-';

--Trust originated preferred securities 'BB+';

--Zero premium exchange notes 'BB+'.

CenterPoint Energy Houston Electric, LLC

--First mortgage bonds 'BBB+';

--General mortgage bonds 'BBB'

--$1.3 billion secured term loan 'BBB'.

CenterPoint Energy Resources Corp.

--Senior unsecured notes and debentures 'BBB';

--Convertible preferred securities 'BBB-'.

Contact: Hugh Welton 1-212-908-0746 or Ellen Lapson, CFA 1-212-908-0504, New York.

Media Relations: James Jockle 1-212-908-0547, New York.