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Fitch puts National Grid Gas on watch
Fitch Ratings said it placed National Grid Gas plc's (NGG) and National Grid Gas Holdings Ltd.'s (NGGH) long-term issuer default rating, both at BBB+ on rating watch negative. The agency also placed NGG's A- senior unsecured debt rating on RWN.
The RWN follows National Grid plc's announcement to sell 60% of its equity interest in NGGH and NGG to a consortium comprising Macquarie Asset Management and British Columbia Investment Management Corp., Fitch said.
“The RWN reflects uncertainty over the consortium's plan for the long-term capital structure of NGG and the new NGG ownership group. Fitch believes that should the sale be completed, the new NGG ownership group would have a more aggressive capital structure as the new owners plan to raise £2 billion of incremental debt. These debt proceeds along with £2.2 billion of cash will be paid to NG for the 60% consideration,” the agency said in a press release.
Fitch said it aims to resolve the RWN once the consortium provides clarity on the final capital structure, expected in the second half of this year. RWN resolution could thus take more than six months.
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