Fitch rates WGL notes A

Fitch Ratings said it assigned an A rating to WGL Holdings, Inc.’s planned issuance of $225 million of senior unsecured notes.

The issuance consists of $125 million of 30-year notes due 2044 and $100 million of five-year notes due 2019.

The proceeds will be used to pay down short-term borrowings and for general corporate purposes, including working capital requirements, Fitch said, and to fund planned share repurchases and capital expenditures.

The outlook is stable.

The ratings primarily reflect the predictable cash flows and strong credit metrics of Washington Gas Light Co., a regulated gas distribution utility subsidiary, Fitch said.

The agency also said it incorporates the risk and volatility of WGL’s retail marketing business.

The stable outlook reflects the solid operating performance of the company’s regulated and non-regulated operations, Fitch said, and an expectation that the company will continue to effectively manage the risks associated with its modestly growing non-regulated businesses.

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