Moody’s revises Gas Transmission to negative

Moody's Investors Service said it affirmed its senior unsecured A3 rating on Gas Transmission Northwest LLC and changed the outlook to negative.

"The negative outlook reflects the uncertainty related to re-contracting risk the pipeline faces in the next two years as about 40% of firm service contracts are up for renewal," Moody’s vice president and senior analyst Gavin MacFarlane said in a news release.

"Moody's expects that the majority of contracts will be renewed, given the sizeable percentage of contracts up for renewal with utilities; however, they may have less favorable terms including a shorter tenor, which would be a credit negative. Non-renewal of said contracts would also be viewed as a credit negative."

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