Fitch affirms Laclede

Fitch Ratings said it affirmed Laclede Group, Inc. and its regulated gas utility subsidiary Laclede Gas Co.'s issuer default ratings at A- and Laclede Gas' first mortgage bonds at A+ and its commercial paper at F1.

The outlook is stable.

Ratings reflect the low business risk and solid financial profile of the company's core regulated gas distribution business, which accounted for about 90% of operating EBITDA in fiscal 2011, the agency said.

Ratings also consider the risk profile of its gas marketing subsidiary, Laclede Energy Resources and the expectation that this business will generally be less than a quarter of operating income, the agency noted.

Laclede Gas' ratings are supported by the utility's stable, primarily residential customer base, diverse gas supply, substantial storage capacity, and manageable capital spending and external funding requirements, Fitch said.

Leverage as measured by debt to EBITDA improved to 3.28 times, reflecting the higher earnings, the agency said.

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