Power Players: Moody’s Reaffirms Strength of Southern Company Gas and Nicor Gas

Moody's Ratings has reconfirmed the credit strength of two leading U.S. utilities, Southern Company Gas Capital and Northern Illinois Gas Company (Nicor Gas), maintaining their ratings at the same level and outlook as stable. The move reflects ongoing faith in both companies' financial stability and operational performance in the face of a tough economic environment.

 

Important Points

 

Ratings Confirmed: Moody's reaffirmed the Baa1 senior unsecured rating for Southern Company Gas Capital and retained stable outlooks for Southern Company Gas Capital and Northern Illinois Gas Company. This is an indication of their perception of their good credit profiles and steady business fundamentals.

 

Stable Outlooks: The stable outlooks reflect Moody's belief that the two utilities will maintain a track record of stable cash flow, responsible financial management, and sound risk mitigation, even as the sector is buffeted by challenges such as volatile demand and changing regulatory landscapes.

 

Strong Performance: Southern Company Gas, a member of the bigger Southern Company group, posted strong financial performance in 2023 with higher earnings and ongoing investments in renewable energy and community outreach. Nicor Gas, operating in Illinois, has increased outreach to underserved communities and has a high operational record.

 

Industry Impact: The confirmation by Moody's reassures investors and stakeholders regarding the companies' capacity to traverse industry challenges while maintaining service reliability as well as shareholder value.

 

This ratings action reflects the long-term stability and strategic resilience of both Southern Company Gas Capital and Northern Illinois Gas Company within the U.S. utility industry.

 

Source: Moody's, Yahoo Finance, Southern Company Annual Report