Moody’s cuts Wisconsin Gas

Moody’s Investors Service said it downgraded the ratings of Wisconsin Gas LLC, including its senior unsecured rating to A3 from A2.

The downgrade mirrors Moody’s estimate that Wisconsin Gas’ financial metrics will stay below historical levels for the next three years, according to Nati Martel, a Moody’s vice president and senior analyst.

Wisconsin Gas, and sister company Wisconsin Electric Power Co. filed for permission to build two liquified natural gas plants in Wisconsin.

“The total investments of around $370 million will peak in 2021 and 2022 and will pressure the utility’s financial metrics throughout this period. Wisconsin Gas’ share in the projects of around $185 million will increase its previous 2020-2022 capital outlay program by around 24% to a substantial $915 million. The LNG projects, along with the utility’s planned expenses related to remediation of manufactured gas plant sites, will delay the anticipated recovery in the utility’s rates until the next general rate,” Moody’s said in a press release.

The outlook is stable.

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