Moody's ups Atmos Energy

Moody's Investors Service said it upgraded the senior unsecured debt rating for Atmos Energy Corp. to Baa1 from Baa2 and the subordinated debt rating to Baa2 from Baa3.

The outlook is stable.

The upgrade reflects a number of favorable factors, including a continuing series of rate increases that have resulted in a sustainable improvement in credit metrics, the recent renewal of the company's primary credit facility, the favorable resolution of the Atmos Pipeline rate case and a renewed management focus on low-risk regulated activities, Moody's said.

Steady rate increases, as well as its improving credit metrics and business risk profile, support the upgrade, the agency said.

With its recent abandonment of its gas storage development business and a weaker outlook for its minor marketing business, Atmos has a renewed strategic focus on lower risk regulated activities, which Moody's said it views as a credit-positive development.

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