Fitch applies BB/RR3 to AmeriGas notes

Fitch Ratings said it assigned a BB/RR3 rating to AmeriGas Partners, LP's senior unsecured note offering due 2025.

The notes are being co-issued with AmeriGas Finance Corp.

Proceeds are expected to be used to repay in part AmeriGas Finance's outstanding notes due in 2022, guaranteed by AmeriGas Partners, and for general partnership purposes.

Fitch said it believes the proposed debt tender transaction to be marginally positive for AmeriGas Partners, with the potential for modest interest savings and the extension of some debt maturities.

AmeriGas Partners’ and AmeriGas Finance’s long-term issuer default ratings are BB.

The outlooks are stable.

Fitch said the ratings reflect the underlying strength and size of AmeriGas Partners’ retail propane distribution network, broad geographic reach, adequate credit metrics and proven ability to manage unit margins under various operating conditions.

The company’s financial performance remains sensitive to weather conditions and general customer conservation, and the partnership must continue to manage volatile supply costs and customer conservation, the agency added.

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