Moody’s alters Atmos view to negative

Moody’s Investors Service said it changed Atmos Energy Corp.’s outlook to negative from stable. Simultaneously, Moody’s affirmed all Atmos ratings, including A1 senior unsecured rating

The severe winter weather across Texas and other parts of Atmos’ service territory resulted in a significant rise in natural gas price and Atmos’ purchase gas cost, the agency said.

“Atmos’ credit profile is pressured by the uncertainty surrounding the recovery timeline for the substantial gas costs incurred during the recent weather events,” stated Edna Marinelarena, a Moody’s analyst in a press release. “We see Atmos carrying a sizeable amount of incremental debt over the next few years, a result of the disruptions in the gas markets. According to the company, Atmos incurred between $2.5 billion and $3.5 billion in procurement costs in February when they typically spend about $1.2 million for the full year,” the agency said in a press release.

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