S&P ups Southwest Gas

Standard & Poor's said that it raised the corporate credit and senior issue-level ratings on Southwest Gas Corp. to BBB+ from BBB and revised the outlook to stable from positive.

The rating actions reflect the view that Southwest Gas has achieved financial metrics commensurate with a higher rating, the agency said.

The company achieved funds from operations-to-adjusted debt of about 25% and an adjusted debt-to-capitalization ratio of 54% as of Dec. 31 and S&P expects the company to continue to achieve fund from operations-to-debt between 20% and 25% and total adjusted debt-to-capital between 53% and 55% in 2011, the agency said.

The ratings on Southwest Gas reflect an excellent business risk profile and an aggressive financial risk profile, S&P said.

The stable outlook on Southwest Gas reflects the expectation that the company will maintain stable financial metrics, S&P said.

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