S&P rates Quadgas BBB+

S&P said it assigned a BBB+ long-term corporate credit rating to Quadgas Midco Ltd., the intermediary holding company of Cadent Gas Ltd.

The outlook is negative.

The agency also said it assigned a BBB rating to the senior secured notes issued by Quadgas Finance PLC, Quadgas Midco's 100% owned finance subsidiary.

Last March, National Grid plc completed the sale of a controlling 61% stake in its subsidiary, Cadent, to a consortium of eight infrastructure funds, S&P explained.

Cadent operates four of the eight gas distribution networks in the United Kingdom, the agency noted.

The group is assessed on a consolidated basis by S&P and the rating on Quadgas Midco is currently the same as the BBB+ rating on its core operating subsidiary, Cadent, the agency said.

This is because Quadgas benefits from specific liquidity lines that are available if the operating company is in lock-up, S&P said.

The group's excellent business risk benefits from the very low risk environment in the regulated utilities industry, as well as low country risk, the agency said.

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