Fitch rates New Jersey Natural Gas A-

Fitch Ratings said it assigned a first-time long-term issuer default rating of A- to New Jersey Natural Gas Co.

The outlook is stable.

The rating reflects the constructive regulatory environment, including margin decoupling and fuel cost recovery, Fitch said, and strong customer growth.

The ratings also consider the weakened credit metrics, driven by the impact of tax reform and an elevated capital program, the agency said.

The company's creditworthiness is supported by its low business risk profile, reflecting the utility's predictable gas transmission and distribution cash flow and earnings, a growing customer base and no commodity price risk, Fitch said.

The company has a relatively modern pipeline infrastructure compared to its peers, with the lowest number of leaks compared to other N.J. gas utilities, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.