Moody's lifts AmeriGas

Moody's Investors Service said it upgraded AmeriGas Partners, LP's corporate family rating and probability of default rating to Ba2 from Ba3.

Moody's said it also upgraded the partnership's 7.25% senior unsecured notes due 2015 and 7.125% senior unsecured notes due 2016 to Ba3 (LGD 4, 69%) from B1 (LGD 5, 71%).

Moody's said it does not rate the 8.875% senior unsecured notes, the senior unsecured bank facilities or $150 million of first mortgage notes.

The outlook is stable.

"Moody's upgraded AmeriGas' ratings to reflect the substantial progress the partnership has made in reducing leverage and improving its operational performance, despite the challenges of rising propane prices and customer conservation," commented Pete Speer, Moody's vice-president/senior analyst.

"The upgrade is also based on Moody's expectation that management continues its conservative financial policies, including how the partnership funds future acquisitions within the propane sector."

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