Fitch: NiSource notes at BBB-

Fitch Ratings said it assigned a BBB- rating to NiSource Finance Corp.'s proposed offering of $250 million of notes due 2040.

The outlook is stable.

Proceeds, as well as funds drawn under NiSource Finance's revolving credit facility, will be used to purchase outstanding NiSource Finance notes.

The rating reflects the low business risk and consistent operating performance generated by a geographically diverse mix of regulated operations and increasing revenues from improved industrial electric usage at Northern Indiana Public Service Co., Fitch said.

The rating also considers the moderating effect of a slow economic recovery on electric and gas demand, the impact of increased competition and the challenges of managing the company's substantial future pension and other post employee retirement benefit obligations.

For the 12 months ended Sept. 30, the debt-to-EBITDA ratio was 4.9 times, Fitch added.

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