Southeast Gas receives Moody’s A2 issuer rating
Published 9:15 am Friday, January 13, 2023
Southeast Gas received an affirmed A2 issuer rating from Moody’s Investor Service on Dec. 15, 2022.
The A2 rating reflects the company’s sound cost recovery framework and steady fixed obligation charge coverage levels, given the company’s low operating cost structure and low leverage profile.
Southeast Gas has limited future capital needs, mostly related to improvements to the system, which should help the company maintain its low leverage profile. The rating also reflects the company’s diversified sources of gas supply and robust hedging policies that help reduce fuel cost volatility.
“This is excellent news for Southeast Gas and our stakeholders,” said Southeast Gas Director of Finance and Administration and CFO Lori Messick. “Our A2 rating allows the company to secure the most competitive rates for upcoming projects, and equates to potential savings of thousands of dollars over the life of any financing we secure.”
Southeast Gas is a public corporation created in 1952 by 14 cities in southeast Alabama. The company provides natural gas service to more than 31,000 residential, commercial, and industrial customers located in 35 communities in the southeast portion of the state. Southeast Gas owns and operates 600 miles of transmission lines and 1,694 miles of distribution lines.