Moody's revises Atmos outlook to stable

Moody's Investors Service said it revised the outlook to stable from negative and affirmed Atmos Energy Corp.’s ratings, including its senior unsecured rating at A1.

Texas’ decision to approve securitization financing has mostly mitigated the about $2.1 billion in fuel costs incurred during the severe winter storm, the agency said.

Moody’s said the stable outlook incorporates the expectation that most of the costs associated with the winter storm will be fully recovered over the next 12 to 18 months and that its expected weak credit metrics including a ratio of cash flow from operating activities pre-working capital to debt will return to above 23% in 2024.

“The outlook also reflects our expectation that the company will continue to receive credit supportive regulatory outcomes in its jurisdictions, allowing it to sustain the ratio above 23% over the long-term,” Moody’s said in a press release.

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