Moody's affirms AmeriGas

Moody's Investors Service said it affirmed AmeriGas Partners, LP's Ba2 corporate family rating and Ba3 senior unsecured rating following news that the company plans to acquire Energy Transfer Partners, LP's propane operations for up to $2.9 billion.

A speculative-grade liquidity rating of SGL-3 also was assigned to the company.

The outlook remains stable.

This acquisition will significantly enhance AmeriGas' scale and geographic footprint in the U.S. propane-distribution industry, the agency said. It also provides additional weather and customer diversity, Moody's said.

On the negative side, AmeriGas will deviate from its recent history of maintaining a conservative leverage profile as it operates with a higher level of debt, Moody's added.

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