S&P lowers ATCO Gas

S&P said it lowered the long-term issuer and issue ratings on ATCO Gas Australia LP to BBB+ from A-.

The outlook on the long-term rating is stable.

ATCO is 100% owned by Canadian Utilities Ltd. and ATCO Ltd. group, the agency said.

S&P also said it lowered the ratings on ATCO Gas to reflect a similar action on its parent, Canadian Utilities Ltd. and the broader ATCO Ltd. group.

The agency said it recently lowered the long-term rating on the parent to A- from A with a stable outlook.

S&P said it continue to assess ATCO Gas as being a moderately strategic subsidiary to the ATCO group.

ATCO Gas has a monopoly position as the sole regulated gas distributor in Perth and surrounding areas, which underpins its stand-alone credit profile of BBB+, the agency said.

The company has cash flow visibility over the next two to three years, given its certain tariff path until December 2019, S&P said.

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