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Summary: Nicor Gas Co. Dec 11

  • ID: 2028961
  • December 2011
  • Standard & Poors
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The Dec. 7, 2010, CreditWatch placement of Nicor Inc. and Nicor Gas Co. followed AGL Resources Inc.'s announcement that it plans to acquire Nicor. AGL plans to fund its $2.4 billion acquisition ($3.1 billion in terms of enterprise value) of Nicor with roughly 40% debt and 60% equity. Based on our calculated pro forma credit metrics, we would expect that the new company's corporate credit rating would be no lower than 'BBB+' when the acquisition closes. Although AGL will fund the transaction with roughly 60% equity, we expect that pro forma credit metrics will be somewhat worse than AGL's current metrics and materially worse than Nicor's. We expect to use a consolidated ratings approach on the new company and will...

Companies mentioned in this report are: Nicor Gas Co.
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

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Nicor Gas Co.

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