Moody's drops National Fuel to Baa2

Moody's Investors Service said it downgraded National Fuel Gas Co.'s senior unsecured debt rating to Baa2 from Baa1.

At the same time, the agency affirmed National Fuel Gas's Prime-2 commercial paper rating.

The outlook is stable.

"The downgrade reflects the growing proportion of National Fuel Gas's unregulated E&P and gas gathering businesses relative to its lower-risk regulated utility and interstate pipeline businesses," Moody's vice president Stuart Miller said in a news release.

"The growth in the unregulated businesses has impacted the company's business risk profile which is captured in the lower rating. The underlying performance of each business segment has been strong and was not a factor in today's rating action."

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