S&P boosts CNG

S&P said it raised its ratings for Connecticut Natural Gas Corp. and its senior unsecured debt to A from A- and removed the ratings from CreditWatch where they were placed with positive implications on March 10.

“CNG's historical stand-alone financial measures have outperformed our expectations. In 2022, the company's FFO to debt was 34.7% as of year-end 2022, which exceeded our prior upgrade threshold of 25%. Under our base-case scenario, we assume CNG will continue to use its capital tracker mechanisms, such as the system expansion reconciliation mechanism and the distribution integrity management program mechanism. We also expect the company will sustain capital expenditure of about $70 million annually for the next three years. As such, we anticipate CNG's stand-alone FFO to debt will remain in the 30%-35% range through 2025,” S&P said in a press release.

The outlook is stable.

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