Moody's: Laclede view negative

Moody's Investors Service sad it changed Laclede Gas Co.'s and its parent, Laclede Group's, outlook to negative from stable.

Moody's said these actions follow the announcement that Laclede Group will acquire Missouri Gas Energy and New England Gas, two gas distribution assets from Energy Transfer, for $1.015 billion in cash plus the assumption of $20 million of debt.

"Laclede Group is paying a big premium for a once-in-a-lifetime opportunity to buy its neighbor," Moody's vice president Mihoko Manabe said in a news release. "Consolidated debt could more than double, while incremental cash flow will increase less."

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