Fitch gives AmeriGas notes BB/RR3

Fitch Ratings said it assigned a BB/RR3 rating to AmeriGas Partners, LP's senior unsecured note offering.

The notes are being co-issued with AmeriGas Finance Corp.

Proceeds are expected to be used to fund a tender for all callable debt and for general partnership purposes. Fitch believes the proposed debt tender transaction to be marginally positive for AmeriGas Partners, with the potential for modest interest savings and the extension of maturities.

The long-term issuer default rating for AmeriGas Partners and its fully guaranteed financing co-borrower, AmeriGas Finance, is BB.

The outlook is stable.

Fitch said the ratings reflect the underlying strength and size of AmeriGas Partners’ retail propane distribution network, broad geographic reach, adequate credit metrics, and proven ability to manage unit margins under various operating conditions. AmeriGas Partners’ financial performance remains sensitive to weather conditions and general customer conservation, and the partnership must continue to manage volatile supply costs and customer conservation, the agency said.

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