Moody's rates Northern Natural notes A2

Moody's Investors Service said it affirmed Northern Natural Gas Co.'s senior debt at A2 and assigned an A2 rating to its proposed $200 million of senior notes.

The outlook is stable.

These rating actions reflect the regulated nature of Northern Natural's assets and a solid contract portfolio with high quality customers that are fairly captive to its system, the agency said.

While the field area is experiencing competitive pressure that has softened the company's cash flow, its majority market area business is stable and continues to support the company's A-quality credit metrics.

The stable rating outlook reflects the stable and mature nature of its regulated pipeline system and the predictability of its cash flows, the agency added.

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