Fitch rates AGL notes A-

Fitch Ratings said it assigned an A- rating to AGL Capital Corp.'s $500 million 5.875% senior notes due 2041.

AGL Capital is a wholly owned subsidiary of AGL Resources Inc., which will fully and unconditionally guarantee payment of the senior notes.

The proceeds will be used to reduce outstanding commercial paper, some of which was issued to repay AGL Capital's 7.125% senior notes that matured in January 2011, and partially pay the expected cash consideration related to AGL's proposed merger with Nicor Inc., Fitch said.

The rating reflects the low business risk of its core regulated gas distribution business and management's favorable track record of operating and investing in a growing portfolio of non-regulated businesses, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.