Fitch assigns AGL notes A-

Fitch Ratings said it assigned an A- rating to AGL Capital Corp.'s $300 million of 3.5% senior notes due 2021 and $200 million reopening of the 5.875% senior notes due 2041.

AGL Capital is a wholly owned subsidiary of AGL Resources Inc. (issuer default rating A-, outlook stable).

Proceeds from the offerings are expected to be used to partially fund the cash consideration and expenses associated with the proposed merger with Nicor, Inc. (issuer default rating A, outlook stable) and for general corporate purposes, the agency stated.

Fitch said that AGL's rating and stable outlook primarily reflect the low business risk of its core regulated gas distribution business and management's track record of operating and managing the risks associated with its growing portfolio of non-regulated businesses.

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