Fitch places Southwest Gas on watch

Fitch Ratings said it placed its ratings for Southwest Gas Holdings, Inc. (SWX) and Southwest Gas Corp. (SWG) ratings on rating watch negative (RWN) following the announcement of the sale of the MountainWest Pipeline and a spinoff of Centuri.

“Placement of SWX and SWG on RWN reflects potentially higher projected FFO leverage than previously expected by Fitch following completion of the asset sale and spinoff. Fitch expects to resolve the RWN once it has greater clarity regarding SWX's plans to provide incremental capital support to Centuri's spin off and equity it is planning to inject into SWG,” the agency said in a press release.

Fitch said it does consider the MountainWest sale to be credit positive but noted the sale price is about $500 less than the $2 billion SWX paid for it.

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