S&P upgrades Northern Natural Gas, Kern River

Standard & Poor’s said it raised the long-term corporate credit and senior unsecured debt ratings on Northern Natural Gas to A from A-.

The agency also said it also raised the long-term corporate credit and senior secured ratings on Kern River Funding Corp. to A from A-.

The outlook on both companies is stable.

The upgrades reflect a similar upgrade to its parent company, Berkshire Hathaway Energy Co., along with the application of a group rating methodology, S&P said.

The strategic relationship between Berkshire Hathaway Inc. and Berkshire Hathaway Energy is now considered strategically important from moderately strategic, the agency said.

Northern Natural Gas and Kern River are considered core entities to Berkshire Hathaway Energy because they are unlikely to be sold in the near term, are integral to the overall group strategy and likely to receive support from the group should it fall into financial difficulty, S&P said.

The stand-alone credit profiles of Northern Natural Gas and Kern River are unchanged at A-.

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