S&P affirms ATCO

Standard & Poor's said it affirmed the A long-term corporate-credit rating on ATCO Ltd.

The outlook is stable.

The affirmation comes after the company announced that it has signed a conditional agreement to acquire WA Gas Networks Pty Ltd., S&P said.

The acquisition will cost about A$1 billion, including the assumption of about A$644 million of debt, the agency said, with the balance paid in cash.

Driving the affirmation was WA Gas Networks' excellent business risk profile, which reflects the company's business as a regulated natural gas distribution monopoly, S&P said.

However, the agency said it views the company's regulatory environment in Western Australia as less mature and somewhat more risky than that of Alberta.

S&P also noted that the company has weaker credit metrics, leading to a mild deterioration in ATCO's consolidated credit metrics.

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