S&P trims ONE Gas

S&P said it trimmed ONE Gas, Inc. and its senior unsecured debt to BBB+ from A.

“The downgrade reflects our expectation for weaker financial measures because of the extreme winter weather and extraordinary increase in natural gas prices,” S&P said in a press release.

ONE Gas anticipates incurring incremental purchased gas costs of about $2.2 billion over a short period that S&P believes will materially weaken its financial measures, leaving it with a minimal cushion at the current rating. “Specifically, we expect the company’s FFO to debt ratio to average about 13%, which is down from our previous expectation of about 20%,” the agency said.

The outlook is negative.

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