Fitch gives A+ to Washington Gas notes

Fitch Ratings said it assigned an A+ rating to Washington Gas Light Co.'s (issuer default rating A) $200 million reopening of its existing 3.8% 30-year unsecured medium-term notes.

The series K unsecured medium-term notes mature Sept. 15, 2046 and rank pari passu with existing senior unsecured debt. After this issuance, the aggregate principal amount of outstanding series K medium-term notes will be $450 million.

Proceeds will be used to pay down short-term borrowings and to pre-fund a portion of planned capital expenditures.

Washington Gas’ ratings remain on rating watch negative.

Fitch placed the ratings on negative watch following the announcement that parent WGL Holdings, Inc. (A-/negative watch) will be acquired by AltaGas Ltd. (unrated) for $6.4 billion.

The negative watch reflects the potential affiliation of Washington Gas with a weaker corporate parent and heightened regulatory risk surrounding the acquisition. Fitch said it expects to resolve the negative watch after the close of the acquisition, which is expected to be completed in second-quarter 2018.

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