Moody's affirms Piedmont

Moody's Investors Service said it affirmed Piedmont Natural Gas Co.'s A3 senior unsecured rating following the company's disclosure of a material increase in its capital expenditure program.

"The affirmation of Piedmont's A3 senior unsecured rating reflects the credit supportive regulatory framework of its multi-jurisdictional operations and its limited exposure to unregulated activities," Natividad Martel, an assistant vice president at Moody's, said in a statement.

"It further incorporates the company's strong cash flow predictability resulting from limited volumetric exposure of the utility's margin given that fixed and semi-fixed rate design components account for a significant portion."

The rating also captures expectation of continued prudent financial policies in the wake of Piedmont's materially higher capital expenditure program over the medium-term with investments ranging between $550 million to $600 million during 2012, the agency noted.

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