S&P puts Southwest Gas Holdings on developing watch

S&P said it revised its CreditWatch on Southwest Gas Holdings Inc. (SWX) to developing from positive. Additionally, the agency changed the watch to developing on MountainWest Pipeline LLC, the BBB issuer credit rating on Southwest Gas Corp. (SWG), the BBB issue-level rating on SWG's senior unsecured debt, and the BBB- issue-level rating on MountainWest's senior unsecured debt. S&P placed the ratings on CreditWatch with positive implications on April 1.

The revision follows SWX reporting an indication of interest to be acquired by a third party that is well above a previous offer.

“We believe a sale of the company could lead to material deviations from our previous expectations for the combined company's business and financial risk. This includes the possibility of SWX being acquired by a financial sponsor and the potential lowering of our assessment of SWX's financial risk profile,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch placement during the upcoming months as more information becomes available.

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