Fitch rates Southwest Gas notes A

Fitch Ratings said it assigned a rating of A to Southwest Gas Corp.'s issuance of senior notes maturing in 2032.

The notes rank pari passu with the company’s existing senior unsecured debt.

Proceeds will be used to refinance the existing notes maturing in 2022 and outstanding balance under the credit facility, and for general corporate purposes.

The company’s long-term issuer default rating is A- with a negative outlook.

Fitch said the company’s ratings reflect the low-risk profile of its regulated gas utility business. The ratings benefit from a relatively constructive regulatory environment. Its natural gas distribution business has modest regulatory diversification, which helps limit exposure to any jurisdiction, the agency added.

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