Moody's assigns ONE Gas notes A2

Moody's Investors Service said it assigned ONE Gas, Inc.'s new senior unsecured notes an A2 rating with a stable outlook.

Net proceeds of $1.13 billion will be distributed to the company's parent, Oneok, Inc. (Baa2, RUR-Down) as part of the financing backing ONE Gas, Inc.'s spinoff from its parent.

"The rating reflects the company's fully rate-regulated operations, acting as a pure play local distribution gas holding company (LDC) serving over 2 million customers across the states of Oklahoma, Kansas and Texas," Moody's analyst Lesley Ritter said in a news release.

"We view ONE Gas as a low business risk LDC which generates stable and predictable cash flows that largely offset the risks posed by a fairly aggressive capital expenditure program for the company's size and relatively weak debt coverage metrics."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.