Fitch applies A to Southwest Gas notes

Fitch Ratings said it assigned an A rating to Southwest Gas Corp.’s $300 million issuance of senior unsecured notes.

The 3.8%, 30-year notes mature Sept. 29, 2046 and rank pari passu with Southwest Gas' existing unsecured debt.

Net proceeds will be used toward the repayment of short-term debt and for general corporate purposes.

Fitch currently rates Southwest Gas' long-term issuer default rating A-/stable.

Fitch said the ratings benefit from a relatively constructive regulatory environment. The utility's natural gas distribution business has revenue decoupling and purchased gas adjustments (PGAs) throughout its service territory. These rate mechanisms increase the stability and predictability of earnings and cash flows and provide for more timely cost recovery.

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