Fitch downgrades WGL

Fitch Ratings said it downgraded the issuer default rating and senior unsecured debt rating of WGL Holdings, Inc. to A from A+.

The agency also affirmed the issuer default rating of primary utility subsidiary Washington Gas Light Co. at A+.

The outlook is stable.

The downgrade reflects a change in financial strategy at WGL, including the planned issuance of parent-level debt and a planned share-repurchase program, Fitch said, and growing investments in natural gas pipelines and alternative energy projects.

The ratings also consider the predictable cash flows and strong credit metrics of Washington Gas, a regulated gas distribution utility subsidiary, the agency said.

The ratings also incorporate the risk and volatility of WGL’s retail marketing business, Fitch added.

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