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S&P downgrades One Gas due to weather impacts on financial measuresfrom SNL Daily Gas Report S&P downgrades One Gas due to weather impacts on financial measures Byline: Dyna Mariel Bade S&P Global Ratings lowered the issuer credit rating of One Gas Inc. to BBB+ from A, with a negative outlook, according to a Feb. 24 news release. S&P Global Ratings said it downgraded One Gas due to weaker financial measures anticipated after recent extreme cold temperatures and winter weather. The weather resulted in the company recording $2.2 billion worth of natural gas purchases due in March. The gas utility has secured a $2.5 billion term loan facility to help pay for the gas. The rating agency attributed the negative outlook to the risks surrounding the recovery of the additional natural gas costs. S&P Global Ratings said it expects the utility's funds from operation to debt ratio to average 13%, a decrease from the agency's prior forecast of 20%. S&P Global Ratings also downgraded the issue-level rating on One Gas' senior unsecured debt to BBB+ from A, and the company's short-term and commercial paper ratings to A-2 from A-1. Moody's also downgraded One Gas' senior unsecured rating and short-term commercial paper rating to A3 from A2 and to P-2 from P-1, respectively. The rating agency changed the outlook to negative from stable. One Gas provides natural gas services to approximately 2.2 million customers across Oklahoma, Kansas and Texas. It owns more than 62,000 miles of transmission, distribution and service pipelines. |
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