S&P: NUI remains on watch developing

Standard & Poor's said that the ratings of NUI Utilities Inc. remain on CreditWatch with developing implications as a result of the announced sale to AGL Resources Inc.

S&P said the watch listing reflects the uncertainty of the successful completion of the transaction.

If the sale is completed, the ratings of NUI Utilities will reflect the consolidated credit quality of AGL, S&P said. However, if the transaction is terminated, the ratings of NUI Utilities could face downward pressure given the company's weakened financial condition and strained liquidity position.

NUI Corp. faces challenges managing the firm's ongoing business while seeking to consummate the transaction as expected. Cash flow contribution from sustaining business lines, including NUI Utilities, is paramount at the current rating level.

S&P rates NUI's corporate credit and senior unsecured debt at BB.

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