Moody's assigns A2 to Indianapolis' Citizens Gas bonds

Moody's Investors Service said it assigned an A2 credit rating to $73 million of City of Indianapolis (Citizens Gas) gas utility distribution system second-lien revenue refunding bonds, series 2008C.

The bonds are scheduled to price on May 29.

Moody's also affirmed the A2 rating on its outstanding subordinate-lien bonds and the Aa3 rating on its senior-lien bonds.

The current offering is another step in the utility's debt restructuring in response to troubled financial markets. Series 2008C bonds will refund series 2003A second-lien revenue bonds, which are auction-rate securities. The utility will also fund the termination payment for its 70% of Libor swap, which is matched to its series 2003A bonds.

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