Moody's affirms AGL Resources

Moody's Investors Service said it affirmed AGL Resources Inc.'s guaranteed finance subsidiary AGL Capital Corp.'s senior rating at Baa1, its operating subsidiaries Atlanta Gas Light Co.'s senior debt at A3 and Pivotal Utility Holdings' unenhanced senior rating at A3.

The outlook is stable.

These rating actions follow AGL Resource's announcement of its agreement to acquire all of the outstanding stock of Nicor Inc. in a part stock, part cash transaction.

The affirmation of the ratings is based on the company issuing sufficient equity as part of the acquisition financing so that the expected debt issuance will have minimal impact on the combined consolidated credit metrics, Moody's said.

The ratings also reflect Nicor's stronger credit metrics and stability as a mostly regulated gas utility, the agency said.

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