Moody's lifts Southern Connecticut Gas

Moody's Investors Service said it upgraded the ratings of Southern Connecticut Gas Co., including its issuer rating to A3 from Baa1.

The outlook is stable.

The upgrade was prompted by the favorable outcome of its recent general rate case that materially improves the credit supportiveness of its regulatory framework and allows it to continue to generate healthy financial results, Moody's said.

In its final order dated Dec. 13, the Connecticut Public Utilities Regulatory Association granted the utility access to state mandated revenue decoupling and infrastructure rider mechanisms, the agency said.

The order also approved Southern Connecticut's proposed three-year rate plan that includes annual increases in retail rates and lends visibility to the companies' revenue generation through the end of 2020, Moody's said.

Overall, the order grants the company credit supportive means to generate stable and predictable operating cash flows, the agency said, and produce financial ratios that are commensurate to those of A3-rated peers.

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