Moody's rates Aquarion Baa1

Moody's Investors Service said it assigned a Baa1 issuer rating to Aquarion Water Co. of Connecticut.

The outlook is stable.

Aquarion's Baa1 issuer rating reflects the company's long operating history, stability afforded by regulated cash flows, investment-grade credit metrics, good relationship with state regulatory authorities, largely residential customer base and a modest near-term capital spending profile, the agency said.

The rating also considers the company's small size and geographic concentration, the significant amount of debt issued at the parent level, limited ring-fencing at Aquarion, lack of a dedicated external credit line and modest trending decline of water consumption due to conservation efforts, the agency noted.

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