S&P: American Water unchanged

Standard & Poor's said there is no effect on the BBB+ and A-2 ratings of American Water Works Co. Inc. following news that it has agreed to purchase unrated Aqua America Inc.'s New York assets for about $71 million.

The outlook is stable.

In a separate agreement, American Water has agreed to sell its operations in Ohio to Aqua America for about $120 million.

The A+ ratings with stable outlook on Aqua Pennsylvania Inc., a subsidiary of Aqua America Inc., also are unaffected.

These transactions are contingent on each other and the agency said it believes they will create synergies for both companies.

The asset purchases and sales will not materially change the operational performance or the financial metrics for either company, S&P added.

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