Moody’s changes AmeriGas to negative

Moody's Investors Service said it changed AmeriGas Partners, LP's outlook to negative from stable and affirmed its Ba2 corporate family rating, Ba2-PD probability of default rating, Ba3 senior unsecured notes rating and SGL-3 speculative grade liquidity rating.

"Reduced sales volumes and earnings in the past two heating seasons combined with gradually increasing debt and distribution burdens have raised AmeriGas' financial leverage and reduced cushion within the Ba2 rating level," Moody's senior analyst Sajjad Alam said in a news release.

"Despite prudent cost containment, maturity management and lowering of interest costs during fiscal 2017, we believe the ability to lower leverage would provide the best insurance against weather risk."

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