Moody’s cuts Southwest Gas

Moody’s Investors Service said it downgraded the senior unsecured rating of Southwest Gas Corp. to Baa1 from A3 and Southwest Gas Holdings, Inc.’s issuer rating to Baa2 from Baa1.

“The ratings downgrade of both Southwest Gas and Southwest Holdings reflects weakening credit profiles driven by rising debt to fund sustained high capital expenditures at Southwest Gas and slowly growing operating cash flow due to tax reform and regulatory lag associated with the recovery of investments,” stated Nana Hamilton, a Moody’s assistant vice president and analyst, in a press release.

The outlook for both issuers is stable.

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