The ratings on Southwest Gas Corp. reflect an excellent business risk profile and an aggressive financial risk profile. Standard & Poor's bases the ratings on the consolidated credit profiles of its natural gas operations segment (about 90% of operating income) and its construction services business, Northern Pipeline Construction Co. (NPL; 10%). Our rating on Southwest Gas reflects improved financial results, and our view that the business risk profile remains excellent given the utility's steady cash flow contribution. We expect the company to continue to achieve FFO to debt between 20% and 25% and total adjusted debt to capital between 53% and 55% in 2011. We also factor a gradual reduction in the regulatory risks associated with the company's Arizona service...
Companies mentioned in this report are:
- Southwest Gas Corp.
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