Fitch: Mountaineer Gas view stable

Fitch Ratings said it affirmed the long-term issuer default rating of Mountaineer Gas Co. at BB and the senior unsecured rating at BB+ and revised the outlook to stable from positive.

The outlook revision reflects expectations that any improvement in the company's credit metrics will be delayed until 2013 at the earliest and subject to the outcome of a pending rate case, according to the agency.

The ratings reflects strong liquidity with relatively modest working capital needs and positive free cash flow; low risk regulated utility business model; generally constructive regulatory environment; and highly dependent on winter heating season, the agency said.

Fitch said it expects a debt-to-EBITDA ratio of 4.2x Dec. 31, compared with 3.8x in 2011.

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