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S&P slashes Centennial Energy
S&P said it lowered its rating on Centennial Energy Holdings Inc. to BBB- from BBB+.
The agency no longer considers Centennial as core to MDU Resources Group Inc. given its intentions to separate a large portion of Centennial's operations from the consolidated group, the agency said.
“Our revision of Centennial's group status to moderately strategic from core incorporates the announced strategic review, plans to separate Knife River (55% of Centennial), and possible separation of MDU Construction Services (30% of Centennial). Furthermore, it incorporates our view that these businesses are reasonably successful at what they do, as well as our view of the strategic importance of WBI Energy Inc.'s assets to MDU's long-term plans,” S&P said in a press release.
The agency assigned a bb+ stand-alone credit profile to Centennial. “Because of our revision, Centennial's bb+ SACP now only gains a one-notch uplift from group support to a BBB- ICR, which is a two-notch downgrade overall.”
The outlook remains developing.
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