Fitch assigns A- to Avangrid subsidiaries

Fitch Ratings said it assigned an A- long-term issuer default rating to the Berkshire Gas Co. and Connecticut Natural Gas Corp., along with a BBB+ long-term issuer default rating to the Southern Connecticut Gas Co. and the United Illuminating Co.

The agency also assigned an A+ rating to Berkshire Gas’s senior secured debt and an A rating to its senior unsecured debt.

Fitch assigned an A rating to Connecticut Natural’s senior unsecured debt and a BBB+ to its preferred stock.

The agency assigned an A rating to Southern Connecticut’s senior secured debt, along with an A- rating to United Illuminating’s senior unsecured debt and A- rating to its pollution control revenue refunding bonds.

The companies are regulated utility subsidiaries of Avangrid, Inc., Fitch explained.

The outlook is stable.

Fitch also said it assigned an F2 commercial-paper rating to Avangrid.

The ratings largely reflect the relatively stable earnings and cash flows of the regulated utilities that provide electric transmission and distribution and natural gas distribution service in areas of New York, Connecticut, Maine and Massachusetts, Fitch said.

The company's regulated utilities are low-risk businesses that account for greater than 70% of consolidated EBITDA, the agency said.

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